retail/warehouse facility located at 2107...
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RETAIL/WAREHOUSE FACILITY
LOCATED AT 2107 WEST JORDAN STREET IN PENSACOLA, ESCAMBIA COUNTY, FLORIDA 32505
AS OF NOVEMBER 22, 2011
B&A File: W11TM6728
PREPARED FOR
ESCAMBIA COUNTY PUBLIC WORKS 3363 WEST PARK PLACE
PENSACOLA, FLORIDA 32505
BY
BRANTLEY & ASSOCIATES REAL ESTATE APPRAISAL CORPORATION
100 NORTH SPRING STREET POST OFFICE 12505 PENSACOLA, FLORIDA 32591-2505 PHONE: (850) 433-5075 FAX: (850) 438-0617 EMAIL: [email protected]
R. SHAWN BRANTLEY, MAI Individual Member
SUMMARY APPRAISAL REPORT
BRANTLEY & ASSOCIATES REAL ESTATE APPRAISAL CORPORATION
R. SHAWN BRANTLEY, MAI, CCIM FL: CERT GEN RZ289 AL: CERTIFIED GENERAL REAL PROPERTY APPRAISER, G00419 BARBARA M. MARTIN, MAI FL: CERT GEN RZ2552 BRUCE A. BLACK FL: CERT GEN RZ2714
BARBARA S. BRANTLEY, CPA ADMINISTRATION & FINANCE
DAVI D C. SINGLETON, MBA
FL: TRAINEE RI23421 AL: TRAINEE REAL PROPERTY APPRAISER T01790
TORRI L. MATHERNE
FL: CERT GEN RZ2987
MICHAEL MIRAGLIOTTA FL: CERT GEN RZ2173
100 NORTH SPRING STREET · POST OFFICE BOX 12505 · PENSACOLA, FLORIDA 32591 EMAIL: [email protected] · WEB ADDRESS: www.brantleyassociates.com
PHONE (850) 433-5075 · FAX (850) 438-0617 R. SHAWN BRANTLEY, MAI
December 7, 2011
Ms. Judy Cantrell Escambia County Public Works 3363 West Park Place Pensacola, Florida 32505
Re: Summary Appraisal Report of a Retail/Warehouse facility located at 2701 West Jordan Street in Pensacola, Escambia County, Florida 32505.
BA File #W11TM6728 Dear Ms. Cantrell:
At your request, we have inspected the above referenced property for the purpose of obtaining an opinion of its market value as of November 22, 2011, being the last date of inspection of the property. The property rights appraised are the fee-simple estate. The subject is a 10,020 SF (+/-) retail/warehouse facility situated upon 1.56-Acres (+/-) of land and located at 2701 West Jordan Street in Pensacola, Florida. We are of the opinion that the value of the fee simple estate of this property, as of November 22, 2011, is:
THREE HUNDRED THOUSAND DOLLARS $300,000
Allocated as Follows:
Land Site $180,000 Improvements $120,000
The above value opinion is subject to the general limiting conditions stated within the body of this
report, as well as the following special assumptions:
1. We asked for but were not provided with a copy of a survey of the subject property, and we are not surveyors. Because we were unable to accurately sketch the site per the plat map, we relied upon the Escambia County Property Appraiser’s assessment mapping in order to define the subject’s site area and site boundaries. We assume that this information correctly depicts the subject site. Should a future survey determine otherwise then this appraisal would be invalid or subject to amendment.
2. Portable buildings located upon the subject property are not included in value.
BRANTLEY & ASSOCIATES REAL ESTATE APPRAISAL CORPORATION
R. SHAWN BRANTLEY, MAI, CCIM FL: STATE-CERTIFIED GENERAL APPRAISER RZ289 AL: CERTIFIED GENERAL REAL PROPERTY APPRAISER, G00419 BARBARA M. MARTIN, MAI STATE-CERTIFIED GENERAL APPRAISER RZ2552
BARBARA S. BRANTLEY, CPA
ADMINISTRATION & FINANCE
BRUCE A. BLACK STATE-CERTIFIED GENERAL APPRAISER RZ2714
100 NORTH SPRING STREET · POST OFFICE BOX 12505 · PENSACOLA, FLORIDA 32591 EMAIL: [email protected] · WEB ADDRESS: www.brantleyassociates.com
PHONE (850) 433-5075 · FAX (850) 438-0617 R. SHAWN BRANTLEY, MAI
Ms. Judy Cantrell December 7, 2011
3. We were not able to access the private offices within the subject property. These areas
were locked, and the key was not provided by the listing agent. We were able to see inside the windows and the office areas appear to be in average condition. But we were not able to inspect all of the restroom facilities. We assume there is no deferred maintenance within these areas. Should any future information determine otherwise this appraisal would be invalid or subject to amendment.
This is a summary appraisal report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary appraisal report. As such, it presents only summary discussions of data, reasoning and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained in the appraiser's file. The depth of the discussion contained in this report is specific to the needs of the client and the intended use stated below. The appraiser is not responsible for unauthorized use of this report. This appraisal has been made in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) and with the Code of Professional Ethics of the Appraisal Institute. This appraisal assignment was not made, nor was the appraisal rendered on the basis of a requested minimum valuation, specific valuation, or an amount, which would result in the approval of a loan. We appreciate the opportunity of doing this work for you, and if there should be any questions, please do not hesitate to call. Sincerely, R. Shawn Brantley, MAI, CCIM Cert Gen RZ 289 Florida Torri L. Matherne, Associate Cert Gen RZ 2987 Florida
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TABLE OF CONTENTS TITLE PAGE ................................................................................................................................... LETTER OF TRANSMITTAL .......................................................................................................... TABLE OF CONTENTS ................................................................................................................ 4 SUMMARY OF SALIENT FACTS AND CONCLUSIONS ............................................................. 5 LOCATION MAPS, EXHIBITS AND PHOTOGRAPHS ................................................................ 6 LEGAL DESCRIPTION ............................................................................................................... 16 FUNCTION AND INTENDED USER OF APPRAISAL ............................................................... 16 SCOPE AND EXTENT OF DATA COLLECTION AND ANALYSIS ............................................ 17 DEFINITION OF MARKET VALUE ............................................................................................. 18 EXPOSURE TIME ...................................................................................................................... 19 MARKETING PERIOD ................................................................................................................ 19 PROPERTY RIGHTS TO BE APPRAISED ................................................................................ 19 ZONING, FUTURE LAND USE, CONCURRENCY .................................................................... 20 ASSESSMENT & TAXES ........................................................................................................... 23 HISTORY OF PROPERTY ......................................................................................................... 23 GENERAL AREA DATA ............................................................................................................. 24 NEIGHBORHOOD DATA ........................................................................................................... 24 SITE DATA ................................................................................................................................ 27 IMPROVEMENT DATA ............................................................................................................... 29 HIGHEST AND BEST USE ......................................................................................................... 32 APPROACHES TO VALUE ........................................................................................................ 35 LAND VALUATION ..................................................................................................................... 35 SALES COMPARISON APPROACH .......................................................................................... 49 INCOME APPROACH ................................................................................................................ 68 RECONCILIATION AND FINAL VALUE OPINION ..................................................................... 89 ASSUMPTIONS AND LIMITING CONDITIONS ......................................................................... 90 CERTIFICATION ........................................................................................................................ 92 QUALIFICATIONS OF APPRAISERS ........................................................................................ 93 ADDENDA .................................................................................................................................. 98
GENERAL AREA ANALYSIS ............................................................................................... 99 SUBJECT PROPERTY DATA ............................................................................................ 111 ASSESSMENT AND TAX CARDS ..................................................................................... 112 DEED .................................................................................................................................. 116 LISTING DATA ................................................................................................................... 118
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SUMMARY OF SALIENT FACTS AND CONCLUSIONS
PROPERTY IDENTIFICATION: Retail/Warehouse Facility LOCATION OF PROPERTY: WS of P Street at the intersections of W Jordan Street
and West Hernandez Street, in Pensacola, Escambia County, Florida.
OWNERSHIP: Davis Galloway, III PO Box 17507 Pensacola, Florida 32522 PURPOSE OF APPRAISAL: To obtain an opinion of the market value of the
subject property, as of the effective date. PROPERTY RIGHTS APPRAISED: Fee Simple Estate DATE OF VALUE: November 22, 2011 DATE OF REPORT: December 7, 2011 YEAR 2011 ASSESSMENT: $241,165 YEAR 2011 TAXES & ASSESSMENTS: $3,743.24 ZONING: C-2, General Commercial and Light Manufacturing
District per Escambia County FUTURE LAND USE: MU-U, Mixed Use Urban per Escambia County LAND AREA: 1.56-acres (+/-) per assessment mapping IMPROVEMENTS: Improvements include a one-story, 10,020 SF (+/-)
pre-engineered metal retail/warehouse building, and related site improvements.
HIGHEST AND BEST USE: Continued use as a retail/warehouse facility.
VALUATION: LAND VALUATION: $180,000 SALES COMPARISON APPROACH: $300,000 INCOME APPROACH: $340,000 FINAL VALUE OPINION: $300,000
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LOCATION MAPS INCLUDING THE SUBJECT
PENSACOLA, FL
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AERIAL MAP INCLUDING THE SUBJECT PROPERTY PER COUNTY
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AERIAL MAP INCLUDING THE SUBJECT PROPERTY
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ASSESSMENT MAP INCLUDING THE SUBJECT SITE
BASED UPON THE ABOVE ASSESSMENT MAP, THE SUBJECT SITE CONTAINS
1.56-ACRES (+/-) OF SITE AREA, OR 67,775 SF (+/-).
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IMPROVEMENTS SKETCH PROVIDED BY THE LISTING AGENT
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PHOTOGRAPHS OF THE SUBJECT PROPERTY
FRONT VIEW - W HERNANDEZ FRONT VIEW – HERNANDEZ & P
BACK VIEW BACK VIEW & EXCESS LAND AREA
SITE VIEW VIEW OF SITE FROM PACE BLVD.
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PHOTOGRAPHS OF THE SUBJECT PROPERTY
WEST HERNANDEZ – WEST WEST HERNANDEZ – EAST
WEST JORDAN STREET – EAST WEST JORDAN STREET – WEST
NORTH P STREET – SOUTH NORTH P STREET – NORTH
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PHOTOGRAPHS OF THE SUBJECT PROPERTY
PACE BLVD – SOUTH PACE BLVD - NORTH
INTERIOR RETAIL / SHOWROOM INTERIOR RETAIL / SHOWROOM
INTERIOR – OFFICE INTERIOR – STORAGE
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PHOTOGRAPHS OF THE SUBJECT PROPERTY
INTERIOR – STORAGE INTERIOR – BATHROOM
INTERIOR – BREAK INTERIOR – WAREHOUSE
INTERIOR – WAREHOUSE INTERIOR – LOFT
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PHOTOGRAPHS OF THE SUBJECT PROPERTY
INTERIOR – LOFT INTERIOR LOFT & SMALL OFFICE
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LEGAL DESCRIPTION
A legal description for the subject may be found in their last deed of conveyance
recorded in a Corrective Warranty Deed found in OR Book 5493, Page 259 of the public
records of Escambia County, Florida. A document image of said deed was available on
the Escambia County property Appraiser’s website. A copy of the deed has been
included in the Addenda section of the appraisal report.
The legal description refers to the subject site lying within a portion of block 28 of
Highland Park Subdivision, inclusive of lots 1 through 5, inclusive of the north 115 feet
of lot 6 and the south 25 feet of lots 6 through 9, inclusive of the south 26 feet and west
15 feet of lot 10, inclusive of the west 15 feet of lot 11, and all of lots 12 through 20,
inclusive of a 20 foot alley running East and West of the center of Block 28; containing
1.62 acres, more or less.
We were able to sketch the site based upon the plat map provided on the
property appraiser’s website order to determine the subject’s site area and site
boundaries. These measurements concluded to a total site area of 1.56 acres +/-.
Should a future survey determine a different site area or site boundaries then this
appraisal would be invalid or subject to amendment. Based upon the assessment
records, the subject site contains approximately 1.56-acres, or 67,775 SF (+/-) of site
area, which is felt to be our most reliable indicator at this time.
FUNCTION AND INTENDED USER OF APPRAISAL
It is our understanding that this appraisal will be used for assisting the client, Ms.
Judy Cantrell, with Escambia County Public Works Department, in the evaluation of the
subject property for internal purposes.
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SCOPE AND EXTENT OF DATA COLLECTION AND ANALYSIS
The scope of the appraisal encompasses the necessary research and analysis to
prepare a report in accordance with its intended use. Primary data concerning the
region, neighborhood and the subject property was obtained through discussions with
city and county government officials, i.e. the County Property Appraiser, City of
Pensacola Planning and Development Services Department, County Public Records,
County Tax Collector, aerial maps, flood maps and local utility companies. Secondary
data was obtained from the Northwest Florida Regional Planning Council, the Chamber
of Commerce, Realtor Publications and Metro Market Trends (a local data base
company).
This firm has completed numerous appraisal assignments in the subject
neighborhood and we have compiled considerable data for it. Much of the data
incorporated in this appraisal analysis has come from our files and was
updated/expanded as necessary in performing our appraisal analysis. The nature of the
market data collected has been determined based upon a thorough inspection of the
subject property and resulting highest and best use analysis.
For this summary appraisal report, the data collection process included
inspection and observation of the physical characteristics of the site and improvements,
photographing the site and the interior and exterior of the improvements, and inspecting
the surrounding neighborhood. Within the confines of this analysis, the appraiser has
made an examination of all available and pertinent market data that could be located
within the previous 2.5-year period before the effective date of the appraisal. The
search included the SMSA and adjacent areas, with the most emphasis placed on those
areas most proximate or similar to the subject. Also, the selection of the data reported
is limited to that data which the appraiser considers relevant to the assignment and to
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the purpose of the appraisal, under the terms of the highest and best use conclusions
rendered herein.
The appraiser has given consideration to the Sales Comparison and Income
Approaches only. The Cost Approach was not utilized due to the age of the
improvements. The report is prepared in compliance with the Uniform Standards of
Professional Appraisal Practice. The format used is a summary appraisal report.
DEFINITION OF MARKET VALUE
"The most probable price which a property should bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller each acting
prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby:
1) buyer and seller are typically motivated;
2) both parties are well informed or well advised and each acting in what they
consider their own best interests;
3) a reasonable time is allowed for exposure in the open market;
4) payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
5) the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions granted
by anyone associated with the sale."1
1 Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation (1/1/08-12/31/09).
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EXPOSURE TIME
The above definition assumes a reasonable exposure time during which the
subject would have been offered on the market prior to the hypothetical consummation
of a sale, at market value, on the effective date of the appraisal. Based upon a
retrospective estimate, the appraiser has concluded an exposure time of from six to
twelve months.
MARKETING PERIOD
The reasonable marketing time is an estimate of the length of time it might take
to sell the subject property at the above estimated market value level during the period
immediately after the effective date of the appraisal. This marketing time has been
estimated at six to twelve months for the subject property, based upon presently
available market information.
PROPERTY RIGHTS TO BE APPRAISED
All present and future benefits and rights of the property in fee simple
unencumbered title; free and clear of all leases, mortgage indebtedness, other liens or
special assessments against the property.
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ZONING, LAND USE PLAN, CONCURRENCY
The subject property is subject to Escambia county jurisdiction and is within the
cumulative C-2, General Commercial and Light Manufacturing District. According to the
Escambia Land Development Code, the purpose and intent of the C-2 district is as
follows:
"This district is composed of certain land and structures used to provide for the wholesaling and retailing of commodities and the furnishing of several major services and selected trade shops. The district also provides for operations entailing manufacturing, fabrication and assembly operations where all such operations are within the confines of the building and do not produce excessive noise, vibration, dust, smoke, fumes or excessive glare. Outside storage is allowed with adequate screening being provided…"
A complete summation of allowable uses and pertinent development guidelines
for the C-2 zoning district is included within the addenda of this report for the reader’s
review. Highlights are as follows:
Uses Permitted:
1. Any use permitted in the C-1 district, which includes personal service establishments, professional and other offices, retail business, restaurants, etc.
2. Amusement and commercial recreational facilities.
3. Carnival-type amusements when located more than 500 feet from any residential district.
4. Distribution warehousing.
5. New and used car sales, mobile home and motorcycle sales and mechanical services.
No such activities are permitted on a public right-of-way.
6. Automobile repairs, including body work and painting services.
7. Radio broadcasting and telecasting stations, studios and offices with on-site towers 150 feet or less in height.
8. Commercial food freezers and commercial bakeries.
9. Building trades or construction office and warehouses with outside on-site storage.
10. Cabinet shop.
11. Taxicab companies.
12. Bars and nightclubs.
13. Boat sales and service facilities.
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A copy of a County zoning map including the subject property is presented below
for the readers review
A copy of a County future land use map including the subject property is
presented below for the readers review.
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Parking – The subject currently has several unmarked gravel-paved parking
spaces on site. According to the Escambia County Land Development Code, 1 space
per each 400 SF of retail other commercial area is required. Applied to the subjects
10,020 SF (+/-) of retail/warehouse area renders a total of 25 required spaces for
subject property, and although the subject does not have marked spaces, we feel the
subject is adequate with regards to parking.
Future Land Use - The subject property is located within the MU-U, Mixed Use -
Urban future land use designation. This designation is consistent with the previously
stated zoning classification. A complete outline of land development regulations
pertinent to this land use designation is included within the Data Book submitted for this
project.
Concurrency - Development orders or permits require a Certificate of
Concurrency with approval contingent upon a finding that adequate public facilities (e.g.,
roadways, water/sewer, parks, drainage, and waste) will be available concurrent with
the impact of the proposed development. We are not aware of any concurrency issues
associated with this location.
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ASSESSMENT AND TAXES
The Escambia County Property Appraiser's Office has identified the subject
property by Parcel Reference No. 17-2S-30-1200-001-028 & 17-2S-30-1200-011-028.
The subject property is assessed to David Galloway, PO Box 17507, Pensacola, Florida
32522. The most recent year 2011 assessment for the property was $241,165,
allocated as follows: $123,215 to the land and $117,950 to the improvements.
According to the Escambia County Tax Collectors Office, the year 2011 taxes for the
subject are $3,743.24. This tax liability appears typical for this type property, and we
are not aware of any special tax assessments pertinent to the subject property. Copies
of the assessment and tax cards are presented within the addenda.
HISTORY OF PROPERTY
The most recent transaction regarding the subject property was recorded on
September 7, 2004 between Grantor’s, David Galloway as Trustees and Grantee, David
F. S. Galloway, III. This is recorded in a Corrective Warranty Deed in Official Records
Book 5493 on Page 259 in Escambia County Public Records. This corrective warranty
deed was to confirm that title was vested in an individual (Galloway), since the last
Original Deed, dated June 20, 1975 in Official Records Book 911 on Page 329. Due to
the fact that was not a sales acquisition, it is not relevant to the current valuation of the
subject property.
Currently the subject property is for sale under two instruments. The first
includes the primary parcel that measures 0.95 acres and all the office/warehouse
improvements, for a listing price of $270,000, under Pensacola MLS#407205. The
property was originally listed for $299,000 on April 15, 2011. It was then increased to
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$299,575 on April 19, 2011 and finally decreased to the present listing price of $270,000
as of August 30, 2011. The property is also available for lease for $3,600 per month on
net lease terms.
Additionally, we were provided with marketing material from the listing agent,
which offer all of the subject improvements and site, for a listing price of $299,575,
under the Neal & Company LLC website.
The property is currently vacant. Copies of the listing information have been
included in the addenda section of the appraisal report.
We are not aware of any other pertinent historical transactions that have
transpired in the past five years or of any pending sales contracts, options, listings or
other conveyance documentation presently pertinent to the subject property.
GENERAL AREA DATA
A detailed description and analysis of the broad market area is included in the
addenda. Based on our analysis, we are of the opinion that the demand for real estate
should remain generally consistent in the broad market area.
NEIGHBORHOOD DATA
The neighborhood boundaries are defined by West Fairfield Drive to the north,
Interstate 110 to the east, and Mobile Highway (Hwy 90) to the west and south. The
neighborhood is shown in the map below.
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Residential development within the neighborhood is characterized by a mix of
newer and older housing in fairly dense conglomerations. Commercial is primarily
limited to the thoroughfares that form the boundaries, i.e. W Fairfield Road, Cervantes
Street 9 (US highway 90) and the interstate, as well as a few major thoroughfares that
cross through the neighborhoods interior, including Brent Lane to the north.
The neighborhood is well accessed by interstate traffic as Interstate 110, is just
east of the subject. Interstate 110 is a connector interstate arterial leading into
downtown. Interchanges with Interstate 110 are provided at Airport Boulevard, Brent
Lane, Fairfield Drive, and at Davis Highway, just north of the subject property.
Interstate 110 is presently undergoing extensive widening with lanes being added and
access being improved by the Florida Department of Transportation.
The subject is located along West Jordan Street, along the west side of Pace
Blvd. This is an older, more built-up area of Pensacola with most of the structures over
20 years old. Some new developments have been built, such as a retail / office strip
center along Pace Blvd., but this is rare. New development has been primarily on the
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east and northeast side of Pensacola in recent years. We would rank this neighborhood
as in a period of decline or early revitalization. The neighborhood generally consists of
low to middle class occupants in economy-sized houses of ample age. There is a bit of
a glut of older commercial buildings along the major thoroughfares. Industrial uses and
storage warehouses have remained strong in the immediate area, with a considerable
amount of rented buildings.
The subject is located in an area that abuts residential development to the west,
and is an interior commercial location. The property benefits from frontage to four
thoroughfares but has little visibility from Pace Blvd., due to the improvements location
at the southwest corner of the site. As we mention further in the appraisal report, the
subject has been vacant for the previous eight months and is currently listed for sale or
for lease. As with the national economy, real estate prices have been weakening in the
neighborhood and we would expect it to be several years before economic recovery
could be anticipated in this area. Therefore, we feel that there is a demand for the
subject property within the neighborhood, but to allow for an extended marketing time.
Although we believe that some demand for industrial/commercial properties
should continue, the future of the market in general remains uncertain, and with the
slow economy, many industrial and commercial businesses appear to be struggling.
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SITE DATA
The subject site is located within along the west side of P Street, and intersects
to the north at West Jordan Street and to the south at West Hernandez. The property is
“L” shapes in configuration and contains approximately 1.56-acres, or about 67,775 SF
(+/-) per County assessment records. The subject has frontage to four thoroughfares
with 115’ (+/-) along the north boundary along West Jordan Street, 300’ along the west
boundary along North P Street, 270’ (+/-) along West Hernandez Street and 185’ along
the east boundary along North Pace Blvd.
The land is basically level, and drainage appears adequate and typical for the
area. Access to the site and exposure via West Jordan Street, West Hernandez Street,
N P Street and North Pace Blvd. is good.
The utilities available to the subject site include water, telephone, electrical and
sewer service. The subject site is located in Flood Zone “X”; an area not prone to flood
activity per the Escambia County GIS flood mapping, which appears based upon FEMA
Flood Map 12033C0390 G. A copy of this flood map is presented below for the readers
review.
FEMA FLOOD MAP INCLUDING THE SUBJECT PROPERTY
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The subject site is comprised of Lakeland Sand and Bonifay Loamy Sand.
Based upon existing and surrounding construction, soils on site are suitable for
development, and are adequately drained. A copy of the USDA soil map including the
subject property is presented below for the readers review.
U.S.D.A SOIL MAP INCLUDING THE SUBJECT PROPERTY
13 Lakeland Sand 0-5 Excessive
Deep, excessively drained soil found on nearly level summits and gently sloping shoulder slopes of broad ridges. Depth to seasonally high water table is more than 6 feet. Permeability is rapid and flooding is none. Suited to most urban uses.
38 Bonifay loamy sand 0-5 Well-drained
This very deep, well-drained soil is on nearly level summits and gently sloping shoulder slopes of ridges in the central and northern parts of the county. Low water capacity; permeability is rapid in the surface and subsurface layers and moderately slow in the subsoil; no flooding. Suited for cultivated crops, pasture use, growth of hay, slash, loblolly, and longleaf pines, recreational use, and most urban uses.
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IMPROVEMENT DATA
The subject site is improved with a large two-story, pre-engineered steel and
concrete block retail/warehouse building containing a total of 10,020 SF (+/-) of gross
building area per our measurements. The property improvements front West
Hernandez Street, at the southwest corridor of the site.
The exterior of the subject building is constructed of metal panels over a steel
and concrete block frame. The property has a loading dock with platform and two pull
down doors, in the southwest portion of the improvements and to the southeast section,
a storefront type entry. The loading dock and porch is covered by a metal canopy and
measures 500 +/- SF. The roof is comprised of metal panels and access to subject is
through the retail storefront and a small metal door in between the two pull down doors.
The improvements eave height is 20’ and the ceiling height is 24’. The subject building
is partitioned into a office/showroom area which measures 6,000 SF, a warehouse area
that measures 4,000 SF, and a mezzanine/loft office area that that measures 4,000 SF,
but is not calculated into the total square footage. The property has a security system.
The interior of the retail/showroom consists of a large open retail area with two
offices to the west. There is a large display counter, with an additional office to the
northwest section of the building. The remaining area is storage and was recently
occupied by a heating and air-conditioning business. The office areas are partitioned
with concrete block and painted insulated drywall walls. The storage area has concrete
block and exposed insulation walls. Ceiling area dropped acoustical tile in the office
and showroom areas and exposed metal in the storage area. Flooring is vinyl tile and
concrete and lighting is fluorescent. There is a small break area north of the second
office, which consists of a sink, storage and small refrigerator. The property has three
restroom facilities. It should be noted there are a large amount of wood shelves in the
storage area. The office and showroom areas are heated and cooled which measure
2,400 SF.
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The warehouse area is typical of most facilities. Walls and ceilings are exposed
insulation and floors are concrete. The mezzanine/loft area is just above the
office/showroom area, located in the northeast section of the improvements. There is a
significant amount of metal shelves in the lower section of the warehouse and other
additional items in the loft area, which seemed to be used primarily for storage. The
reader is referred to the subject photos section of the appraisal report for a visual
review.
Overall, the subject building appears well designed as a retail/warehouse facility,
containing a mix of retail / showroom, warehouse and office space that is suitable for a
variety of potential uses. The building was constructed in 1977 per assessment
records, and it has an actual age of 34-years. We estimate an effective age of 20-
years, and a remaining economic life of 30 years.
Basic specifications for the 10,020 SF (+/-) retail/warehouse building are as
follows:
Retail/Industrial Building: Foundation: Concrete slab at grade. Structural: Pre engineered steel columns, trusses. Exterior Walls: Painted metal panels over concrete block frame. Roof: Metal panels (24’ +/- eave height). Ceiling: Primarily exposed insulation and some acoustical tiles in a
suspended grid system within the finished portions of the building.
Floor Cover: A mix of vinyl tile and concrete. Lighting: Fluorescent fixtures within the finished and warehouse
spaces. Skylights within the warehouse. Plumbing: We see a total of three restrooms, each of which have two
fixtures, and extra sink in the break area. The plumbing appears adequate for the intended use of the building.
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Heating/Cooling: Central heating and air within the finished portions of the building. The un-finished warehouse areas have no air conditioning, but we see that ceiling fans and exhaust fans.
Condition: Based upon our inspection, the building appears to be in
average condition for its age. Actual Age: 34-years Effective Age: 20-years Remaining Economic Life: 30-years.
Site Improvements: These improvements include asphalt parking with several
unmarked parking spaces, a covered storage area, and four wood storage structures located in the southeast section of the site.
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HIGHEST AND BEST USE
The Highest and Best Use is defined as follows: "That reasonable and probable
use that will support the highest present value, as defined, as of the effective date of the
appraisal. Alternately, that use, from among reasonable, probable and legal alternative
uses, found to be physically possible, appropriately supported, financially feasible, and
which results in highest land value."2
In estimating highest and best use of the subject site, the following were taken
into consideration:
1) The uses physically possible on the site
2) The uses legally permissible at that site
3) Financially feasible uses of the site
4) The most productive use of the property
“AS VACANT”
Legally Permissible Uses – The property is subject to the C-2, Retail Commercial
and Light Manufacturing zoning district and a future land use plan that is consistent with
the zoning classification. The C-2 district is a cumulative district, which allows a broad
range of commercial development as previously cited in the zoning section of this
report. This zoning district has been assigned to numerous properties within the
surrounding area.
Physically Possible Uses – As vacant and with a site area of 1.56-Acres, or about
67,775 SF (+/-), the subject site is physically suitable for a variety of uses. The site is a
commercial tract and is located along the west side of Pace Blvd., with frontage to four
thoroughfares, West Jordan Street to the north, West Hernandez Street to the south,
North P Street to the west, and North Pace Blvd. to the west. The subject is easily
accessible and infrastructure in support of the land is capable of supporting a variety of
2 Dictionary of Real Estate Appraisal, published by the Appraisal Institute, 1993.
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improvements. The site has mostly level topography with all necessary utility services
available. From a physical standpoint, the property is suitable for a variety of
commercial applications with no known physical restrictions to development other than
size.
Financially Feasible Uses: Financially feasible uses are best exhibited by
reviewing surrounding properties. As previously discussed, the subject site is situated
along West Jordan Street, West Hernandez Street, North P Street and North Pace
Blvd., in an interior commercial location that abuts residential development. Based
upon the immediate surrounding construction, which is primarily older retail buildings,
with a considerable amount of similar industrial structures along North Pace Blvd., we
believe that retail/office, and/or storage warehouse use, or a commercial application
similar in nature to the surrounding construction, would be a financially feasible for the
subject site.
Maximally Productive Use: The maximally productive use is deemed to be a
retail/office and/or storage/distribution application, or other use similar in nature to the
surrounding facilities within the Pace Blvd. corridor.
“AS IMPROVED”
Legally Permissible
Uses - The existing improvements are currently utilized as a retail/office and
storage/distribution warehouse (retail/warehouse type property). This use, as well as a
variety of other commercial uses, is legally permissible under the applicable C-2, Retail
Commercial and Light Manufacturing zoning code.
Physically Possible Uses – The existing retail/industrial facility contains 10,020
SF (+/-) of gross building area, and is typical of a multi-unit mixed-use type facility such
as those seen in the surrounding area. The building contains office, showroom and a
large amount of storage able to support a variety of business. The flow of the building
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floor plan appears to be good. All necessary utilities are available to the improvements,
and they have adequate commercial exposure and accessibility from West Jordan
Street, West Hernandez Street, North P Street, and North pace Blvd.
In summary, the existing improvement is clearly best physically suited for
retail/warehouse type applications, with emphasis on retail/office/and storage
warehouse type or related uses, as these are the uses for which is specifically
designed.
Financially Feasible Uses – The existing improvement is of a standard type that
could be utilized for a wide variety of retail/office and/or storage related uses. The
subject is located within a dense industrial / commercial area with several similar
neighboring properties. Demand for retail, office and storage type space in this
neighborhood has been strong in the past, and should continue well into the future.
Although the subject does not benefit from frontage to a more popular thoroughfare, the
improvements provide several possibilities for a potential industrial, commercial, or light
manufacturing business. Based upon the construction of the subject specifically for use
as a retail/warehouse, we believe that office and storage warehouse use, or similar
commercial application, would be a financially feasible for the subject “as-improved”.
We can see no other financially feasible use for the subject due to its specialized
construction.
Most Productive Use – Based on the previous legally, physically and financially
feasible analyses, we conclude that the existing retail/warehouse type use of the facility
(retail, office and storage warehouse) is the highest and best uses of the subject
property “as improved”.
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APPROACHES TO VALUE
For this summary appraisal report, it is our opinion that the Sales Comparison
and Income Approaches are sufficient to produce a credible value opinion in light of the
intended use of the appraisal. The Cost Approach was not utilized due to the age of the
improvements. Following our analysis of the subject, a review of the indications will be
made in the final reconciliation of the market value.
LAND VALUATION
The Sales Comparison Approach is employed for valuation of the subject land.
We have located three closed sales and a listing that provide insight into the market
value of the subject land. These land sales and listings are described in detail on their
respective sale data sheets on the following pages. On a subsequent page is a Land
Sales Comparison Chart that summarizes characteristics of the subject site, the
comparables and adjustments made by the appraiser to arrive at a value for the subject
site. The Land Sales Comparison Chart facilitates our comparison procedure and
provides structure for the adjustment process. With this in mind, we proceed with the
presentation of the sales data sheets for the selected comparable sales.
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LOCATION MAP OF SUBJECT AND COMPARABLE SALES AND LISTING
PENSACOLA, FLORIDA
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Land Sale No. 1
Property Identification Record ID 4280 Property Type Vacant Commercial Site, Vacant Commercial Land Property Name Vacant Commercial Address 2209 Fairfield Drive West, Pensacola, Escambia County, Florida
32505 Location Southwest corner of Fairfield Drive and "Q" Street Tax ID 172S30140002006 Date Inspected 08/02/2010, Bruce Black Present Use Vacant Commercial Sale Data Grantor Waterfront Rescue Mission, Inc. Grantee Richardson, Inc. Sale Date July 07, 2010 Deed Book/Page 6612/1 Property Rights Fee Simple Marketing Time 332 Conditions of Sale Arm's Length Financing All Available Sale History None in past ten years Instrument General Warranty Deed With Restrictive Covenants Verification Randy Peacock, Listing Agent; 850-261-0268, July 21, 2010;
Other sources: MLS#373326, Public Records, Confirmed by David Singleton
Sale Data Sale Price $200,000 Doc Stamps $1,400 Land Data Zoning C-2 General Commercial Topography Level, high and dry, some trees Utilities All available Dimensions 150.01' (S) x 322.91' (S) x 150' x 321.64' (S) Shape Irregular Flood Info Zone "X", minimal probability Future Land Use C, Commercial Highest & Best Use Commercial development Encumbrances Restrictive Covenants Land Size Information Gross Land Size 1.110 Acres or 48,341 SF Front Footage 150 ft Total Frontage: 150 ft SS of W. Fairfield Drive;323 ft WS
of N "Q" Street Indicators Sale Price/Gross Acre $180,220 Sale Price/Gross SF $4.14 Sale Price/Front Foot $1,333
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Land Sale No. 1 (Cont.)
Remarks This is the sale of a parcel of land located at the southwest corner of the intersection of Fairfield Drive W. and "Q" Street. The parcel is generally level, high and dry, and has a few large trees. Soils on site are comprised of Troup sand (0-5% slopes), and Lakeland sand (0-5% slopes), which are suitable for development. Fairfield Drive is four lanes in front of this property. All utilities are available to this property. This property has never been improved. The property purchased was subdivided from a larger 2.55 acre property. This parcel was purchased for development with a carwash. The owner of the parent tract has taken the rest of the property off of the market. Site dimensions were taken from the plat map, and scaling of assessment mapping. Also, the deed indicates that restrictive covenants include restrictions on use of the property. The deed indicates that the site may not be used for Bingo Hall, Nightclub or bar serving alcoholic beverages, except as incidental to a restaurant, topless or nude shows, off track betting, head shop, adult book store, pool and billiard hall, and other similar uses. The restrictions leave most commercial uses cited in the C-2 code still permitted on this site.
AERIAL MAP OF LAND SALE 1
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Land Sale No. 2
Property Identification Record ID 4099 Property Type Commercial, Commercial Site Property Name Vacant Commercial Address Leonard Street, Pensacola, Escambia County, Florida 30492 Location NS Leonard St, b/w "E" St. and Palafox St. Tax ID 18-2S-30-3001-010-001 Date Inspected Originally 10/02/2009 Present Use Vacant Commercial Land Sale Data Grantor JCP Properties of Pensacola LLC Grantee Pensacola Habitat for Humanity Inc Sale Date November 02, 2010 Deed Book/Page 6655/1373 Property Rights Fee Simple Marketing Time 34 mo. Conditions of Sale Arm's Length Financing Cash or equal. Sale History See Remarks Instrument Corporate Warranty Deed Verification Kent Simmons, Listing Agent; 850-477-7044, March 24, 2010;
Other sources: Public Records, MLS#341942, Confirmed by Bruce A. Black
Sale Price $68,800 DS $481.60 Cash Equivalent $68,800 Land Data Zoning C-2, Commercial Topography Mostly Level Utilities All Necessary Except Sewer Dimensions 250' x 238.41' x 345.45' Shape Triangular Flood Info Zone X, Minimal Flood Prob. Future Land Use Commercial Highest & Best Use Commercial Development Encumbrances None noted Land Size Information Gross Land Size 0.700 Acres or 30,492 SF Front Footage 250 ft West Leonard Street Indicators Sale Price/Gross Acre $98,286 Sale Price/Gross SF $2.26 Remarks This is the recent sale of vacant commercial land located on the north side of Leonard Street, between its intersection with "E" and Palafox Streets in Pensacola, FL. According to Erin at ECUA, the nearest sewer lines are located at the intersection of Leonard Street and the unconstructed "D" Street right-of-way. Approximately 350' west of this site. Thus, no sewer is available to this site. This site is cleared and appears mostly level.
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Land Sale No. 2 (Cont’d)
Historic listing data: This property was purchased on December 13, 2007 for $75,000. It was then listed for sale or lease, with the original listed price at $105,000. The asking price had been reduced several times over the years to $83,900, and it sold on November 2, 2010 for $68,790 ($68,800 Per Deed/Public Records).
AERIAL MAP OF COMPARABLE 2
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Land Sale No. 3
Property Identification Record ID 4715 Property Type Commercial Property Name Commercial Site Address 2475 E. Olive Road, Pensacola, Escambia County, Florida
32504 Location SW corner of Olive Rd and Lawton St. Tax ID 17-1S-30-3000-000-003 Date Inspected 02/23/2011 Present Use Vacant Commercial Sale Data Grantor Richard Williams, etal Grantee Robertson Brazwell, LLC Sale Date July 30, 2010 Deed Book/Page 6620, 474 Property Rights Fee Simple Marketing Time 419 days Conditions of Sale Arm's Length Financing See Comments Sale History None in previous five years Verification Jeannie Brown, daughter of grantor & listing agent; 850-572-
5295, February 23, 2011; Other sources: MLS#370725, public records, inspection, Confirmed by David Singleton
Sale Price $130,000 Land Data Zoning C-1, Commercial Topography Level, cleared Utilities All public available Dimensions 209.06' X 294.32' X 209.06' X 283.4' (+/-) Shape Rectangular Rail Service None Fencing None Flood Info Zone "X", minimal probability Highest & Best Use Commercial development Encumbrances None adverse noted Motivation Speculation Land Size Information Gross Land Size 1.370 Acres or 59,677 SF Front Footage 503 ft Total Frontage: 209 ft East Olive Road;294 ft Lawton
Street Indicators Sale Price/Gross SF $2.18
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Land Sale No. 3 (Cont.)
Remarks This is the sale of a 1.37 acre parcel of land located at the southwest corner of E. Olive Rd and Lawton Street, approximately 0.5 miles east of the densely developed commercial area at the juncture of E. Olive Road and N. Davis Hwy. At the time of purchase, the property contained a 2,300 SF house built in 1955 that was subsequently demolished. We estimate a demolition and removal cost of $5.00/SF, which when applied to the square footage renders an estimated cost to demolish and remove the home of $11,500. The listing agent tells us that the property was sold as somewhat of a distressed sale. The sellers had to deal with the theft of copper wiring and an AC unit, replaced said items only to have them stolen again. She said that the owners could no longer afford to carry a mortgage on the property and continually repair the dwelling, thus, they sold the property under what she believed to be market value for a quick sale. The listing agent tells us that the seller financed the sale on the following terms: $25,000 down payment, 15 year amortized loan with a 2 year balloon. She did not know the interest rate; however, she believes it was commensurate with market rates at the time. At the time of inspection we noted a for sale sign by the owners for the vacant site offering the property as "build to suit" or vacant land 9850-393-8565). The asking price is $299,000 ($5.01/SF).
AERIAL PHOTOGRAPH OF LAND SALE NO. 3
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Land Listing No. 4
Property Identification Record ID 5063 Property Type Commercial, Commercial Site Property Name Vacant Commercial Address 2801 North T Street, Pensacola, Escambia County, Florida
32505 Location 4 Blocks S of Fairfield at T & Fisher Tax ID 17-2S-30-1400-060-078 Date Inspected December 2, 2011 Present Use Vacant Commercial Land Sale Data Grantor Pensacola Habitat for Humanity, Inc. Survey Date December 02, 2011 Deed Book/Page 6655/1373 Property Rights Fee Simple Marketing Time 1563 Sale History None in Past 3 years Verification Gary Watson, CCIM, EXIT Realty; 850-232-7576, Other
sources: Public Records, MLS#330571, Confirmed by Torri Matherne
Listing Price $159,000 Land Data Zoning C-2, Commercial Topography Mostly Level Utilities All Available Dimensions 150 x 300 Shape Rectangular Flood Info Zone X, Minimal Flood Prob. Future Land Use Commercial Highest & Best Use Commercial Development Encumbrances None noted Depth 300 Land Size Information Gross Land Size 1.240 Acres or 54,014 SF Front Footage 600 ft Total Frontage: 300 ft N T Street;150 ft W Fisher
Street;150 ft W Leonard Street Indicators Sale Price/Gross Acre $128,226 Sale Price/Gross SF $2.94 Sale Price/Front Foot $1,060 Remarks This is a listing of a vacant commercial tract that has frontage to W Fisher Street, North T Street, and West Leonard Street. The property is zoned C-2 and is located east of W Street in Pensacola.
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AERIAL MAP OF COMPARABLE 4
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The above cited comparables are organized in the following grid to facilitate our
adjustment process.
ITEM SUBJECT
Location N Pace
Prox to Subject N/A
Adj Sales Price N/A
Site Area (SF) 67,775
Price/SF N/A
Property Rights Fee Simple Similar Similar Similar Similar
Adj Price/SF N/A
Financing Cash or Equiv Similar Similar Similar Similar
Adj Price/SF N/A
Cond of Sale Arm's Length Similar Similar liquidation 5% Negot -15%
Adj Price/SF N/A
Buyer Expend None Similar Similar Similar Similar
Adj Price/SF N/A
Time/Mkt Cond Nov-11 Jul-10 Nov-10 Jul-10 Current
Adj Price/SF N/A
Location N Pace Superior -10% Inferior 10% Similar Inferior 10%
Site Area (SF) 67,775 48,341 -5% 30,492 -5% 59,677 54,014Prim Frontage 685 473 250 503 600SF per FF 99 102 122 119 90Shape/Utility L Shaped Rect/Sup -5% Trian/Inf. 10% Rect/Sup -5% Rect/Sup -5%
Corner/Interior Dual Frontage Corner Interior 5% Corner Corner
Zoning C-2 C-2 C-2 C-1 C-2
Utilities All All All All All
Easements None None None None None
Topography Lvl, Dry,Avg Similar Similar Similar Similar
Net Phys Adj % N/A -20% 20% -5% 5%
LAND SALES COMPARISON GRID
$2.50
$2.50
$2.50
LAND LISTING 4
2801 T St
0.6 MilesNW
$159,000
5.5 Miles NE
$130,000
$2.63
54,014
$2.94
$2.94
$2.94
$2.17
59,677
$2.18
$2.18
$2.18
$2.29
$2.29
$2.29
LAND SALE 2
200 Leonard St
LAND SALE 3
2475 E Olive
30,492
$2.26
1 Miles NE
Adjusted Value/SF
LAND SALE 1
2209 Fairfield Dr
1 Mile N
$4.14
$4.14
$4.14
48,341
$4.14
$200,000 $68,800
$3.31
$2.26
$4.14
$2.26
$2.71
$2.26
$2.26
$2.26
$4.14
Unit of Comparison - A unit of comparison is a component into which price is
divided to facilitate comparison. Typical units of comparison employed by appraisers
are price per SF, price per acre, price per front foot, price per SF of building area, price
per room, price per property as a whole, etc. The function of the selected unit of
comparison is to automatically adjust comparables for size.
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In this appraisal, and in the preceding grid, we have used the unit of comparison
of price per SF of site area. We have chosen this unit of comparison because we
believe this is the manner in which a typical buyer or seller would most likely frame an
acquisition or disposition decision. Adjustments are then applied to the calculated unit
of comparison to account for observed differences between the subject property and the
comparables. In making adjustments, the appraiser has assumed the subject property
to be the market standard. When the amenities of a particular comparable sale exceed
those of the subject, the sale price of the comparable sale has been reduced or
adjusted downward. When the reverse is true and the comparable sale is inferior to the
subject, the sale price of the comparable sale is increased. Following is a brief
explanation of adjustments applied in the comparison grid.
Property Rights - To the best of the appraiser's knowledge, all of the comparable
sales were of fee simple interest. Because the appraiser is estimating the value of the
fee simple interest in the subject property, no adjustment is required for this element of
comparison.
Financing - The appraisal is made in terms of cash or terms generally equivalent
thereto. All of the comparables represent either a "cash to seller" arrangement or
financing at market terms. For this reason, no adjustment is necessary in this category
of comparison.
Conditions of Sale – The comparables were found to be "arms length"
transactions without evidence of any undue influence or duress. For this reason, these
comparables were sold under conditions of sale that are compatible with the market
value definition and no adjustment is required. A negative adjustment was applied to
Land Listing 4 to reflect the probable market difference between the list price and
eventual sales price based on area data from the Multiple Listing Service. A positive
adjustment was also applied to comparable three because it was sold under conditions
where the buyer needed to liquidate.
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Buyer Expenditures – All three sales did not involve any extraordinary buyer
expenditures for demolition, rezoning and/or environmental considerations, thus, no
adjustment was necessary for this sale.
Time/Market Conditions – We collected sales over a relatively recent time period
and adjustments or market conditions are not necessary.
Location – Location is an important component of a property’s value. This is
especially true for commercial land as traffic flow, exposure and surrounding
development residential and commercial development plays a major role in land values.
The subject property benefits from four roadways, with 185’ of frontage to Pace Blvd.
Sale 1 is located in a superior area that is denser commercially, and a negative
adjustment was applied. Sale 2 and Listing 4 are located on less exposed roadways,
with less traffic, and positive adjustments were applied. Sale 3 is located along a similar
heavily travelled road.
Site Area – The subject parcel contains 67,775 SF (+/-) of site area and is being
compared to sites ranging from 30,492 SF to 59,677 SF. Adjustments were applied to
account for the inverse relationship typical between the selected unit of comparison
(price/SF) and total parcel size.
Frontage/Shape/Utility – The subject property has a reasonable configuration in
relation to its roadway frontage and exposure. Because exposure to the roadway is
important for commercial property, we wish to consider relative exposure. Because we
are using price/SF as the relevant unit of comparison, we need a measure for primary
frontage that is relative. To serve this purpose, we compute the area-to-frontage ratio,
which tells us the amount of SF for every ft. of primary roadway frontage, and serves as
a suitable measure for primary roadway exposure. All four comparables have similar
ratios to the subject. However, Comparables 1, 3, & 4 are all rectangular in shape and
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superior to the subject, which has an “L” shape. For this reason negative adjustments
were applied. Additionally, Sale 2 is triangular in shape, inferior to the subject in the
form of utility and a positive adjustment was applied.
Corner/Interior - The subject and comps 1, 3 & 4 are corner parcels and no
adjustments are necessary as the subject also has multiple access points. Comp 2 is
an interior parcel, inferior to the subject property and a positive adjustment was applied.
The presence of corner frontage enhances the versatility of a land parcel by enhancing
potential building design possibilities as well as ingress/egress.
Zoning – The subject is a commercially zoned site as are all of the comparable
sales and our listing. No adjustments were warranted.
Utilities - All utilities are available to the subject and all of the comparables, thus,
no adjustments are required.
Easements - We are not aware of any easements that significantly affect the
subject property or the comparables. Hence, adjustment is not necessary.
Topography - The subject and the comparables have reasonably level
topography and typical soils, thus no adjustments are warranted.
Land Value Analysis - The comparables indicate an adjusted unit value range of
from $2.17/SF to $3.31/SF and a mean of $2.70/SF. None of the comparable sales are
considered ideal, due to the lack of vacant land activity in the immediate area in the past
five years. However, all of the comparables are good indicators of value for different
elements of comparison. We have given all of the comparables some consideration in
reconciling, and therefore we conclude to a land value at the mean of $2.70/SF for the
subject property. Applied to the 67,775 SF comprising the subject site, this produces a
value opinion of $182,992, which we round to $180,000.
LAND VALUE - $180,000
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SALES COMPARISON APPROACH
The Sales Comparison Approach relies upon the principle of substitution, which
asserts that no person is justified in paying more for a property then the price of
purchasing a similar property of equal utility on the open market. The Sales Comparison
Approach is much like the approach taken by buyers who consider several offerings of
properties before deciding to purchase a particular property.
The appraiser has gathered several sales of properties like the subject, but has
relied upon the four most similar sales that we were able to obtain in arriving at an
indication of value for the property. Data sheets relative to the selected sales are
included on the following pages. Following the data sheets is a sales comparison grid
that summarizes the amenities of the subject property and those of the comparables
used to arrive at an indicated value for the subject property. The grid also summarizes
adjustments made by the appraiser to arrive at an indicated value of the subject
property.
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LOCATION MAP FOR THE SUBJECT AND COMPARABLE IMPROVED SALES 1-4
PENSACOLA, FL
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Improved Sale No. 1
Property Identification Record ID 1538 Property Type Office and Warehouse Property Name Office/Warehouse Address 5904 North Palafox Street, Escambia County, Florida Location NE Corner of Palafox St. and Oleander Dr. Tax ID 35-1S-30-9002-002-006 Date Inspected April 24, 2009 Present Use Former Automotive Parts Unlimited, Inc. Sale Data Grantor Automotive Parts Unlimited, Inc. Grantee The Fisher Company, LLC Sale Date April 02, 2009 Deed Book/Page 6445 558 Property Rights Fee Simple Marketing Time 500 Days Conditions of Sale Arm's Length Per Listing Agent Financing Cash to Seller Sale History None other within the previous three years
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Improved Sale No. 1 (Cont.)
Instrument Warranty Deed Verification Edna Marie Gibbs, List. Agent; 850-477-5908, April 24, 2009;
Ron Giles, Selling Agent, 850-477-5908, April 27, 2009; Other sources: MLS 336068, Public Records, Confirmed by Bruce A. Black
Sale Price $410,000 Doc Stamps $2,870 Adjusted Price $410,000 Land Data Land Size 1.330 Acres or 57,935 SF Front Footage 219 ft Total Frontage: 219 ft WS Palafox Street;185 ft NS
Oleander Drive Zoning C-2, Commercial Topography Appears Mostly Level Utilities All Necessary Available Dimensions 211.52' x 14.6' x 177.92' x 205.9' x 227.52' Shape Mostly Rectangular Flood Info Zone X Future Land Use C, Commercial, and MU-1, Mixed Use Highest & Best Use Present Use or Similar Commercial Use Encumbrances None Noted General Physical Data Building Type Single Tenant SF 10,710 Area Breakdown Office 240 Conditioned Display Area 3,680 Conditioned Warehouse 6,790 No A/C Construction Type Brick/Metal Siding Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC 37% Conditioned Stories 1 Year Built 1960 Condition Fair Parking All Unmarked Ample Income Analysis Potential Gross Income $48,195 Est. $4.50/SF Vacancy $4,820 Est. 10 Percent Effective Gross Income $43,375 Estimated Expenses $7,400 Estimated Net Operating Income $35,975 Estimated Indicators Sale Price/ SF $38.28 Floor Area Ratio 0.18
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Improved Sale No. 1 (Cont.)
Land to Building Ratio 5.56:1 Gross Income Multiplier 8.51 Eff. Gross Income Multiplier 9.45 Expenses/Sq. Ft. $0.69 Overall or Cap Rate 8.77% Net Operating Income/Sq. Ft.
$3.36
Remarks This is a recent sale of a former automotive parts manufacturing facility. The building has a 240 SF office area, a 3,680 SF display room, which could be used as office space, and a 6,790 SF warehouse at the rear. Based upon our conversation with the listing agent and the selling agent, the office and display areas are conditioned, and the rear warehouse area is not. The rear warehouse is accessed via two metal rolling bay doors, and a 1,000 SF canopy covers the rear bay door area. At the time of the inspection, which occurred very recently after the sale, the facility appeared to need some minor maintenance to some siding or possibly the roof, a small piece of which was hanging down. However, this item appears mainly cosmetic in nature. Also, the selling agent reports that the buyer will refurbish the interior in stages, as some walls, and some interior finish needs work, and he stated that the interior was in generally poor shape. All parking on site is unmarked, and the listing agent reports that a lease exists with a nearby car dealer to allow some autos to be parked on the south end of this site for car display. The property had been listed on MLS for an asking price of $450,000, and was on the market for 500 days prior to the sale.
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Improved Sale No. 2
Property Identification Record ID 1917 Property Type Office and Warehouse Property Name Office and Warehouse Address 3611 Palafox Street, Pensacola, Escambia County, Florida Location WS Palafox St. 214.99' S of Herman St. Tax ID 05-2S-30-1001-003-026 Date Inspected December 6, 2010 Present Use Ewing Irrigation Products Sale Data Grantor H.L. Davis, Inc. Grantee Ewing Irrigation Products, Inc. Sale Date September 15, 2010 Deed Book/Page 6636 356 Property Rights Fee Simple Marketing Time 94 Days Conditions of Sale Arm's Length Financing Cash to Seller Sale History No other within the previous three years Instrument Warranty Deed Verification Penny Nichols Wilson; 850-982-7204, December 06, 2010;
Other sources: MLS 392003, Public Records, Confirmed by Bruce A. Black
Sale Price $410,000 Doc Stamps $2,870 Cash Equivalent $410,000 Land Data Land Size 0.987 Acres or 42,995 SF Front Footage 198 ft Total Frontage: 198 ft WS Palafox St. Zoning ID-2, General Industrial Topography Mostly Level Utilities All Necessary Except Sewer Dimensions 197.56' x 219.92' x 195.49' x 217.61' Shape Rectangular Flood Info Zone X
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Improved Sale No. 2 (Cont.) Future Land Use Commercial Highest and Best Use Present Use Encumbrances None Noted General Physical Data Building Type Single Tenant SF 10,000 Area Breakdown Office/Display 2,712 Air Conditioned Warehouse 7,288 Unfinished Construction Type Pre Engineered Steel Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC Office/Display Area Only / 27% conditioned Stories 1 Year Built 1993 Condition Average Parking Marked 11 Unmarked Additional Income Analysis Potential Gross Income $47,500 Est. $4.75/SF NNN Vacancy $7,125 Est. 15 Percent Effective Gross Income $40,375 Estimated Expenses $8,000 Estimated Net Operating Income $32,375 Estimated Indicators Sale Price/ SF $41.00 Floor Area Ratio 0.23 Land to Building Ratio 4.35:1 Gross Income Multiplier 8.63 Eff. Gross Income Multiplier 10.15 Expenses/Sq. Ft. $0.80 Overall or Cap Rate 7.9% Net Operating Income/Sq. Ft.
$3.24
Remarks This is a sale of an office/warehouse building located along the west side of Palafox Street, between its intersections with Herman St. and Fairfield Dr. in Pensacola, FL. According to the listing agent, the building featured 2 side bay doors, heating and cooling in the office/display area, and has a natural gas generator. Per our exterior inspection, the building appears to be in average condition.
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AERIAL MAP INCLUDING IMPROVED SALE 2
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Improved Sale No. 3
Property Identification Record ID 1918 Property Type Office and Warehouse Property Name Office and Warehouse Address 300 West Leonard Street, Pensacola, Escambia County, Florida Location NS West Leonard St. East of North "E" St. Tax ID 18-2S-30-3001-002-001 Date Inspected December 6, 2010 Present Use Office and Warehouse, Appears Vacated Sale Data Grantor 1170 West Leonard, LLC Grantee Pensacola Habitat for Humanity, Inc. Sale Date November 02, 2010 Deed Book/Page 6655 1375 Property Rights Fee Simple Marketing Time 440 Days Conditions of Sale Arm's Length Financing Cash to Seller Sale History None other within the previous three years Instrument Warranty Deed (Corporate) Verification David Valetto, Listing Agent; 850-477-7044, December 06, 2010;
Other sources: MLS 372584, Public Records, Confirmed by Bruce A. Black
Sale Price $970,000 See Comments Land Data Land Size 4.761 Acres or 207,385 SF Front Footage 447 ft Total Frontage: 447 ft NS of West Leonard Street Zoning C-2, General Commercial Topography Mostly Level Utilities All Necessary Available Dimensions Metes and Bounds Shape Irregular Flood Info Zone X Future Land Use Commercial Highest and Best Use Present Use
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Improved Sale No. 3 (Cont.) Encumbrances None Noted General Physical Data Building Type Single Tenant SF 22,800 Area Breakdown Display Area 9,000 Air Conditioned Office 1,500 Air Conditioned Warehouse 12,300 No A/C Construction Type Pre Engineered Steel Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC Office/Display Area Stories One Year Built 1971 Condition Average Income Analysis Potential Gross Income $102,600 Est. $4.50/SF NNN Vacancy $15,390 Est. 15 Percent Effective Gross Income $87,210 Estimated Expenses $14,500 Est. 16.63 Percent Net Operating Income $72,710 Estimated Indicators Sale Price/ SF $42.54 Actual Floor Area Ratio 0.11 Land to Building Ratio 9.09:1 Gross Income Multiplier 9.45 Eff. Gross Income Multiplier 11.12 Expenses/Sq. Ft. $0.64 Overall or Cap Rate 7.5% Net Operating Income/Sq. Ft.
$3.19
Remarks This is a recent sale of an office and warehouse facility located at 300 West Leonard Street in Pensacola, FL. The building has a finished office and display area, and unfinished warehouse. It was purchased by Pensacola Habitat for Humanity for a total consideration of $970,000. Of this price, $840,000 was in cash, with the remainder being a $130,000 charitable donation to the seller. Also, the north end of the site is asphalt paved, and is used as a fenced storage yard for equipment.
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AERIAL MAP INCLUDING IMPROVED SALE 3
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Improved Sale No. 4
Property Identification Record ID 1942 Property Type Retail / Commercial Property Name Retail / Warehouse Address 8653 Pensacola Blvd., Pensacola, Escambia County, Florida Location Southwest corner of Pensacola and Barber St. Tax ID 111S301901003019 Present Use Consignment Shop Sale Data Grantor Bank of Pensacola Grantee Bryant & Nancy Riesenberg Sale Date August 31, 2010 Deed Book/Page 6630, 1942 Property Rights Fee Simple Marketing Time 243 days Financing Cash to Seller Sale History None in previous five years Verification Bill Gainey, Selling Agent; 850-712-0245, January 25, 2011;
Other sources: MLS#381403, public records, Confirmed by David Singleton
Sale Price $462,500 Land Data Land Size 2.100 Acres or 91,476 SF Front Footage 363 ft Total Frontage: 363 ft Pensacola Blvd.; 253 ft NS Hannah
St.; 226 ft SS Barber St. Zoning C-2, General Commercial Topography Mostly Level Utilities All Necessary Available Dimensions 362.69' x 225.58' x 144.27' x 20' x 235.25' x 253.43' Shape Irregular Flood Info Zone "X", Minimal Probability Future Land Use MU-U, Mixed Use Urban Highest and Best Use Commercial Encumbrances No Adverse Noted
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Improved Sale No. 4 (Cont.) General Physical Data Building Type Single Tenant Gross SF 8,000 Area Breakdown Showroom 2,490 Est. per listing agent Warehouse 5,510 Est. per listing agent Construction Type Pre Eng. Metal Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC Central – 31 % Conditioned Stories One Year Built 1978 Per Assessment Rec. Condition Average Income Analysis Potential Gross Income $48,000 Est. at $6/SF Vacancy $4,800 Est. at 10% Effective Gross Income $43,200 Expenses $4,320 Est. at 10% Net Operating Income $38,880 Indicators Sale Price/Gross SF $57.81 Floor Area Ratio 0.09 Land to Building Ratio 11.11:1 Gross Income Multiplier 9.64 Eff. Gross Income Multiplier 10.71 Expenses/Sq. Ft. $0.54 Overall or Cap Rate 8.41% Net Operating Income/Sq. Ft.
$4.86
Remarks This is the sale of a large retail / warehouse facility located at the southwest corner of Pensacola Boulevard and Barber Street in north Pensacola, FL. The buyers purchased the property for use as a consignment shop. The property appears to be in average condition. There is also a 1,600 SF canopy. Also, the site has access via Ryan Ave. along its entire rear boundary, which is approximately 399.52’ per assessment records. Thus, the site is accessible on all four sides.
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AERIAL MAP INCLUDING IMPROVED SALE 4
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The above-cited sales are organized on the following spreadsheet to facilitate a
comparison with the subject and to accommodate our adjustment process.
ITEM SUBJECT
Address Pace Blvd.
Ind Ro & GIM N/A 8.77% 8.51 7.90% 8.63 7.50% 9.45 8.41% 9.64
Adj. Sales Price N/A
Gross Bldg Area 10,020
Price/SF N/A
Property Rights Fee Simple Similar Similar Similar Similar
Adj Price/SF N/A
Financing Cash or Equivalent Similar Similar Similar Similar
Adj Price/SF N/A
Cond of Sale Arm's Length Similar Similar Similar Similar
Adj Price/SF N/A
Buyer Expend None Similar Similar Similar Similar
Adj Price/SF N/A
Time/Mkt Cond Nov-11 Apr-09 -15% Sep-10 Nov-10 Aug-10
Adj Price/SF N/A
Location W Hernandez Superior -5% Superior -5% Similar Superior -35%
Site Size (SF) 67,775 57,935 42,995 207,385 91,476
Bldg Cov Ratio 14.8% 18.5% 23.3% 11.0% 8.7%
Design/Quality 1-Sty./Average 1-Sty./Avg. 1-Sty./Avg. 1-Sty./Avg. 1-Sty./Avg.
Act Age/Eff Age A34/E20 A51/E20 A17/E15 -5% A39/E20 A32/E20
Condition Average Average Better -15% Better -15% Average
Gross Bldg Area 10,020 10,710 10,000 22,800 8,000
Access Paved Similar Similar Similar Similar
Funct Utility Average Similar Similar Similar Similar
% Finished 24% 37% 27% 46% -10% 31%
Net Phys Adj % N/A -5% -25% -30% -45%
Adj Value/SF $30.81
x SF Subject 10,020
Ind. Value Subject
Ind. Value Subject "R"
$462,500
$318,591
$319,000
IMPROVED SALES COMPARISON GRID
-10%
$31.80
10,020
$57.81
$57.81
$57.81
8,000
$57.81
$57.81
Improved Sale 4
8653 Pensacola Blvd.
$308,115
10,020
$298,376
$970,000
10,000 22,800
10,020
$57.81
$310,000 $308,000 $298,000
$309,729
$410,000 $410,000
10,020
10,710
$38.28
$38.28
$30.91
$38.28
$38.28
Improved Sale 1
5904 N Palafox
Improved Sale 2
3611 N. Palafox St.
Improved Sale 3
300 W. Leonard St.
$42.54
$42.54
$42.54
$42.54
$41.00
$41.00
$29.78
$42.54
$30.75
$41.00
$41.00 $42.54
-5%
$41.00
$41.00$38.28
$32.54
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Unit of Comparison - A unit of comparison is a component into which price is
divided to facilitate comparison. Typical units of comparison employed by appraisers
are price per SF, price per acre, price per useable acre, price per front foot, price per SF
of building area, price per room, etc. The function of the selected unit of comparison is
to automatically adjust comparables for size.
In this appraisal, and in the preceding grid, we have used the unit of comparison
of “price per SF” of building area. We have chosen this unit of comparison because we
believe this is the manner in which a typical buyer or seller would most likely frame an
acquisition or disposition decision. Adjustments are then applied to the calculated unit
of comparison to account for observed differences between the subject property and the
comparables. In making adjustments, the appraiser has assumed the subject property
to be the market standard. When the amenities of a particular comparable sale exceed
those of the subject, the sale price of the comparable sale has been reduced or
adjusted downward. When the reverse is true and the comparable sale is inferior to the
subject, the sale price of the comparable sale is increased. Following is a brief
explanation of adjustments applied in the comparison grid.
Property Rights - To the best of the appraiser's knowledge, all of the comparable
sales were of fee simple interest. Because the appraiser is estimating the value of the
fee simple interest in the subject property, no adjustment is required for this element of
comparison.
Financing - The appraisal is made in terms of cash or terms generally equivalent
thereto. All of the comparables represent either a "cash to seller" arrangement or
financing at market terms. For this reason, no adjustment is necessary in this category
of comparison.
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Conditions of Sale - To the best of the appraiser's knowledge, all of the
comparable sales were found to be "arms length" transactions without evidence of any
undue influence or duress. For this reason, the comparables were sold under
conditions of sale that are compatible with the market value definition and no
adjustment is required.
Buyer Expenditures - The selected comparable sales did not involve any
extraordinary buyer expenditures for demolition, rezoning and/or environmental
considerations, thus, no adjustments were necessary for these comparables.
Time/Market Conditions - A time/market adjustment was not necessary to most
of the comparables, which are relatively recent. The older transaction was adjusted
negatively due to a declining market.
Location - Location is an important component of a property's value. The subject
is located at the west of Pace Blvd. along West Jordan Street in Pensacola, FL. Sales 1
and 2 are located along North Palafox Street, a slightly superior area, with more intense
density. Sale 3 is located along the north side of W. Leonard Street, west of its
intersection with Palafox Street. This location is similar to the subject, with no
adjustment necessary. Sale 4 is located along the west side of Pensacola Blvd.
between its intersections with Barber and Hannah Streets. This location is along a busy
arterial route near a Super Wal-Mart, and it compares better than the subject’s location.
Thus, we applied a negative adjustment to this sale. No other adjustments were
necessary for location differences.
Site Type/Size & Building Coverage Ratio - The subject facility is situated on a
1.56-acre, or 67,775 SF (+/-) site and exhibits a building coverage ratio of 14.8%. Sales
3 and 4 were adjusted negatively for their better coverage ratios (more surplus site
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area) in comparison to the subject. The other two comparables are sufficiently similar in
this regard so as not to warrant adjustment.
Design/Quality - The subject and the comparables are all similar pre-engineered
metal buildings of similar design and average quality. No adjustments for were
warranted.
Actual/Effective Age & Condition - The subject improvements have an actual age
of 34-years per assessment records, and an estimated effective age of 20-years. All
the comps have a similar effective age rating except #2, which is adjusted negatively for
a younger age rating. In addition, Sales 2 and 3 were felt to be in superior condition to
the subject property and negative adjustments were applied. No other adjustments
were warranted.
Gross Building Area - The subject facility contains 10,020 SF (+/-) per our
measurements, and is being compared to structures ranging in size from 8,000 SF (+/-)
to 22,800 SF (+/-). We believe the selected unit of comparison (price/SF building) is
adequate in accounting for size variation.
Access – The subject is presently accessed via paved frontage along both Pace
Blvd., West Jordan and West Hernandez Street. Each of the comparables has similar
paved access for which no adjustments were necessary.
Functional Utility – Each of the comparables is similar with regards to functional
utility; no adjustments were necessary.
Finished Area % - The 10,020 SF (+/-) subject facility contains approximately
2,400 SF (24%) of finished 10,020 SF per our measurements, with the remaining area
being unfinished warehouse area. Sales 1, 2 & 4 have similar percentages of finished
space, with no adjustment necessary. Sale 4 has a larger percentage of finished area,
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and was adjusted negatively as necessary. No other adjustments were necessary for
differences in the amount of finished area.
Valuation Summary - The comparables indicate an adjusted unit value range
from $29.78/SF to $31.80/SF, and average $30.81/SF. Each of the comparables is a
reasonable indicator of value for different elements of comparison. With weight given to
each of the sales, and considering the subject’s older construction, location, and size,
we reconcile a unit value of $30.00/SF. Applied to the subject’s 10,020 SF (+/-) renders
a value indication of $300,600, which we round to $300,000 “R”.
VALUE OPINION VIA SALES COMPARISON APPROACH - $300,000
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INCOME APPROACH
The Income Approach is founded upon the principle of anticipation, i.e., the value
of an investment property is the value created by the expectation of cash benefits to be
derived from the ownership of the property. The first step in the Income Approach is to
estimate the gross income the property is capable of producing. From this amount a
deduction is made to reflect normal vacancy and credit losses, resulting in an effective
gross income. Operating expenses necessary to maintain this income are then totaled
and deducted from the effective gross income, resulting in the net operating income.
The net income is then capitalized at a rate that will attract an investor to the property.
The first step in our analysis is to estimate the economic or market rent of the
subject property based on current conditions. This will involve market research of rental
rates paid for similar type office/warehouse properties. From this data, a comparison
will be made and an economic rent extracted for the subject property.
Subject Rental Data: As previously mentioned within the history section of this
report, the subject currently vacant and has been that way for the last 8 months. The
property is currently offered for lease for $3,600 per month on net lease terms, which
equates to $4.32/SF.
Market Rent Survey for Comparable Properties: In estimating the economic rent
for the subject property, we have performed a market rent survey of similar competing
facilities in the surrounding market. Complete descriptions of those deemed most
comparable are included on the following pages and are preceded by a map depicting
their location in relation to the subject.
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LOCATION MAP FOR THE SUBJECT AND COMPARABLE RENTALS
PENSACOLA, FL
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Improved Lease No. 1
Property Identification Record ID 568 Property Type Office/Warehouse Property Name Showroom/Office/Warehouse Address 120 Lurton Street, Pensacola, Escambia County, Florida Location NS Lurton Street within the Palafox Industrial Park Tax ID 05-2S-30-2600-040-005 Date Inspected September 1, 2011 Present Use ICI Dulux Paints Physical Data Gross SF 11,200 Area Breakdown Warehouse Area 8,200 Per Terhaar Cronley Office Area 3,000 Per Terhaar Cronley Construction Type Pre Engineered Steel Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC Office Sprinklers No Stories One Floor Height 20' Year Built 1975
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Improved Lease No. 1 (Cont.)
Condition Average General Lease Data Tenant ICI Dulux Paints Typical Lease Term Three years Lease Type Triple Net Tenant Size 11,200 to 11,200 General Tenant Summary Owner TCIP-B, LLC Management Co. Terhaar & Cronley Property Com Verification Anna Palmer, Owners' Representative; 850-433-7007,
September 01, 2011; Other sources: Public Records, Confirmed by Barbara M. Martin
Tenant Expenses Taxes, Insurance and Interior Rent Analysis Actual Rent $4.15/SF Average Remarks This is a current lease of an office and warehouse building located along the north side of Lurton Street, within the Palafox Industrial Park in Pensacola. The facility also has 10 marked parking spaces and appears to have been well maintained. The building layout described to us by Terhaar & Cronley differs from that within the Property Appraiser’s assessment card slightly, and we relied upon the owner’s description of the overall interior breakdown. The lease rate is $3.59/SF on a triple net basis wherein the tenant is responsible for property taxes, insurance and maintenance. This is approximately equivalent to $4.75/SF on a gross basis wherein the owner would be responsible for these expenses. This tenant has occupied the premises since 1996, but the lease was renegotiated and amended in the last quarter of 2009. According to the “Lease Amendatory Agreement”, the current lease rates are as follows: For term of 09/01/2009 to 02/28/2012, lease rate shall be $3,350/month or $3.59/SF For term of 03/01/2012 to 08/31/2014, lease rate shall be $3,525/month or $3.78/SF The tenant has an option to renew for an additional five years commencing on 09/01/2014 at a lease rate of $3,735/month, or $4.00/SF.
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Improved Lease No. 2
Property Identification Record ID 1515 Property Type Commercial Property Name Office / Warehouse Building Address 128 Industrial Blvd., Pensacola, Escambia County, Florida
32505 Location Between Hwy 29 & W Street Tax ID 38-1S-30-3001-007-001 Date Inspected December 2, 2011 Physical Data SF 4,000 Construction Type Pre-Engineered Metal Roof Type Metal Electrical Average HVAC Central in Office Sprinklers Yes Stories 1 Year Built 2000 Condition Average General Lease Data Typical Lease Term 1 Years Lease Type NNN Tenant Size 4,000 General Tenant Summary Owner Barbara Jo Miller Trustee
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Improved Lease No. 2(Cont.)
Management Co. Beck Property Management Verification Gerald McArthur, SIOR, Beck Property Management; 850-477-
7044, December 02, 2011; Confirmed by Torri Matherne Rent Analysis Actual Rent $2.25/SF Remarks This is a lease of an office/warehouse property located on Industrial Blvd. in Pensacola's "Car City". The property has 800 SF of office, and 3,200 SF of warehouse with a 10 x 10 roll up door and a 14' eave height. The office consists of a reception area, two private offices and two restrooms. The property is lease for $750 per month for a year on triple net lease terms.
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Improved Lease No. 3
Property Identification Record ID 567 Property Type Office/Warehouse Property Name Office Warehouse Address 4005 North Pace Boulevard, Pensacola, Escambia County,
Florida Location WS Pace Blvd., North of Fairfield Drive Tax ID 09-2S-30-1400-025-001 Date Inspected March 30, 2007, Multiple Since Present Use Excide Batteries Physical Data Gross SF 8,400 Area Breakdown Office Area 1,750 Warehouse Area 6,650 Construction Type Pre Engineered Steel Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC Office Stories One Floor Height 20' Year Built 1992 Condition Average General Lease Data Tenant Excide Batteries Typical Lease Term 3/11 - 2/28/2012 Lease Type Triple Net Tenant Size 8,400 to 8,400
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Improved Lease No. 3 Cont.) General Tenant Summary Owner Terhaar Cronley Investment Par Management Co. Terhaar Cronley Verification Anna Palmer with Terhaar Cronley; 850-433-7077, July 05,
2011; Other sources: Public Records, Confirmed by Bruce A. Black
Rent Charges $4,223 per month Renewals No Options Tenant Expenses Taxes, Insurance and Interior Rent Analysis Actual Rent $6.03/SF Average Remarks This is a lease of an office and warehouse building located along the west side of Pace Boulevard, north of Fairfield Drive and south of Palafox Street. This building appears to be in average condition and has a loading dock and two rolling bay doors for warehouse access. The facility also has 14 marked parking spaces and appears to have been well maintained. The lease is on a triple net basis for $6.03/SF, wherein the tenant is responsible for property taxes, insurance and maintenance.
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Improved Lease No. 4
Property Identification Record ID 1401 Property Type Office/Warehouse Property Name Office/Warehouse Facility Address 4011 N. Pace Blvd. #B, Pensacola, Escambia County, Florida
32505 Location W/S of Pace, just south of Fairfield Tax ID 092S301400021001 Date Inspected 06/09/2011 Present Use Pro Active Installation (office furniture installers) Physical Data Land Size 2.200 Acres or 95,832 SF SF 5,000 Area Breakdown Office 500 Warehouse 4,500 Construction Type Metal panel over steel frame Roof Type Metal panel Foundation CC slab Electrical Typical HVAC Office area Sprinklers None Stories One Year Built 1994 Condition Average General Lease Data Tenant Pro Active Installation Typical Lease Term 2 years Lease Type Gross Tenant Size 5,000 General Tenant Summary Owner TCIP-C LLC Management Co. Neal & Company, LLC Verification Don Neal, Leasing Agent; 850-444-9994, June 10, 2011; Other
sources: MLS#363379, public records, Confirmed by David Singleton
Escalations None Office Area 500 Percent Finished 10
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Improved Lease No. 4(Cont.) Rent Analysis Actual Rent $4.50/SF Average Remarks Rental data for an office/warehouse facility located along the west side of Pace Blvd., just south of Fairfield Drive. The tenant is Pro Active Installations, which installs office furniture. The term is for two years at $4.50/SF on a gross basis. This is one half of a building, with the other suite similar to this space. There are 2 dock high doors.
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Improved Lease No. 5
Property Identification Record ID 554 Property Type Office/Warehouse, Office and Warehouse Property Name Office and Warehouse Building Address 500 E. Heinberg Street, Pensacola, Escambia County, Florida Location NS Heinberg Street across from Sammy’s Bar Tax ID 00-0S-00-9025-001-045 Date Inspected July 6, 2011 Present Use Pensacola Winnelson Physical Data Gross SF 9,240 Area Breakdown Finished Office Space 2,000 Warehouse 7,240 Construction Type Pre Engineered Steel Roof Type Metal Panels Foundation CC Slab Electrical Typical HVAC Central in Office Stories One Year Built 1987 Condition Average General Lease Data Tenant Pensacola Winnelson Typical Lease Term 11/2009 – 11/2012, 3-Years Lease Type NNN Tenant Size 9,240 to 9,240
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Improved Lease No. 5(Cont.) General Tenant Summary Owner Terhaar Cronley Investment Management Co. Terhaar Cronley Verification Anna Palmer, Terhaar and Cronley; 850-433-7007, July 05,
2011; Other sources: Inspection, Landlord, Confirmed by Bruce A. Black
Rent Charges $3,850/month Renewals 1 Option for a 3-year term Rent Analysis Actual Rent $5.00/SF Average Remarks This is a lease of a 9,240 SF office and warehouse facility located along the north side of East Heinberg Street in Pensacola. This building has approximately 2,000 SF of finished office space and the remaining area being open warehouse. The facility appears to be in average condition and was leased for a 3-year term commencing November 2009. The current rental rate is $5/SF on a NNN basis wherein the tenant is responsible for property taxes, building insurance and interior maintenance. The tenant has an option to renew for a 3-year term.
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Improved Lease No. 6
Property Identification Record ID 1389 Property Type Office/Warehouse Property Name Office/Warehouse Address 4117 N. Davis Highway, Pensacola, Escambia County, Florida
32503 Location West side of N. Davis Hwy, North of Fairfield Tax ID 052S301103000002 Date Inspected 04/26/2011 Present Use Vacant, will become Lumber Liquidators Physical Data Gross SF 10,000 Area Breakdown Warehouse 7,700 Office/Showroom 2,300 Construction Type Pre-eng. metal Roof Type Metal panel Foundation CC Slab HVAC Office/showroom only Stories One Year Built 1984 Condition Average General Lease Data Tenant Lumber Liquidators Typical Lease Term 5 years Lease Type NNN General Tenant Summary Management Co. Neal & Company, LLC Verification Don Neal, Leasing Agent; 850-444-9994, April 28, 2011; Other
sources: MLS#364477, public records, Confirmed by David Singleton
Rent Charges $4.80/SF Renewals One five year option to renew
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Improved Lease No. 6 (Cont.) Remarks This is the leasing data for an office/warehouse facility located along the west side of N. Davis Highway and the east side of Interstate 110. The property does not have access from the interstate but has great exposure from the interstate. The lease is for 5 year at $4.80/SF on a NNN basis beginning July 1, 2011. The tenant, Lumber Liquidators, was given 2 months free rent (July & August 2011). There is one five-year option to renew with a 10% increase in the rate. Lumber Liquidators is responsible for parking lot, structure, and maintenance above first $500 per occurrence, as well as taxes, insurance, utilities. The tenant demolished the showroom and rebuilt to their specifications at an estimated cost of $53,000.
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Improved Asking Lease No. 7
Property Identification Record ID 1327 Property Type Office and Warehouse Property Name Office and Warehouse Address 124 Industrial Blvd., Pensacola, Escambia County, Florida Location NS Industrial Blvd. b/w N. "W" St. and Hwy 29 Tax ID Portion of 38-1S-30-3001-007-001 Date Inspected July 12, 2011 Present Use Vacant Office/Warehouse Bldg. Physical Data SF 5,060 Area Breakdown Office 2,560 Air Conditioned Warehouse 2,500 Air Conditioned Construction Type Pre Eng Steel, Brk/Wd. Sid. Roof Type Metal Panels Foundation CC Slab, Ground Level Electrical Typical HVAC 100% Air Conditioned Stories 1 Year Built 1982 Condition Average General Lease Data Tenant Vacant, Asking Rent Lease Type Asking Triple Net Tenant Size 5,060 to 5,060 General Tenant Summary Owner Miller, Barbara Jo, Trustee Verification Christopher Bouchard; 850-434-7500, Other sources: MLS
408789, Confirmed by Bruce A. Black, Remains current as of September 6, 2011.
Rent Charges Asking $2,291.67/month Tenant Expenses RE Taxes, Insurance, Int. Main
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Improved Asking Lease No. 7 (Cont.) Rent Analysis Asking Rent $5.43/SF
Remarks This is the current asking rent for the office and warehouse building located at 124 Industrial Blvd. in Pensacola, FL. The building is 100% air conditioned, including both the office and warehouse. It is in average condition, and is Class B type office space with wood panel walls, etc. The building also has a roll up bay door at its rear warehouse space. This facility is situated between N. "W" Street and Hwy 29, in an industrial area.
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The above rental comparables are summarized on the following table.
# Property Address Usage Size (SF)Year Built Rent/SF
Lease Terms
N/A Subject Retail / Warehouse 10,020 1977 $4.32/SF Asking NET1 120 Lurton Street, Penscaola Office / Warehouse 11,200 1975 $4.15/SF NNN2 128 Indistrial Blvd., Penscaola Office / Warehouse 4,000 2000 $2.25/SF NNN3 4005 N Pace Blvd., Penscaola Office / Warehouse 8,400 1992 $6.03/SF NNN4 4011 North Pace Blvd. # B, Penscaola Office / Warehouse 5,000 1994 $4.50/SF GROSS5 500 E Heinburg St., Pensacola Office / Warehouse 9,240 1987 $5.00/SF NNN6 4117 N Davis Hwy, Pensacola Office / Warehouse 10,000 1984 $4.80/SF NNN7 124 Industrial Blvd., Penscaola Office / Warehouse 5,060 2000 $5.43/SF NNN
$5.21/SF Mean
SUMMARY TABLE OF COMPARABLE LEASES
The subject contains 10,020 SF (+/-) of overall gross building area, and has 24%
finished space. Although most of the above comparable rentals are
“office/warehouses”, many front primary routes and have retail and office type
characteristics, such as the subject, and are similar in their construction.
The comparable leases provide a range from $2.25 to $6.03, with a mean of
$5.21. Most of the leases front superior thoroughfares, with higher traffic count and are
highly more visible than the subject property. We are aware that the subject has been
offered at $4.32/SF for quite some time without takers. Based on the subject property’s
location, age and current average condition we feel the subject is most representative of
$4.00/SF. Based on the leasable area of 10,020 SF, the total estimated potential gross
income for the subject of $40,080, which we round to $40,000 “R”.
Potential Gross Income - $40,000 on a triple net basis
85 BRANTLEY & ASSOCIATES
Vacancy and Collection Loss: Per our observation and consultations with
several property managers, similar facilities such as the subject property have minimal
vacancy rates. However, the subject property is currently vacant and has been on the
market for 8 months. Based on the surrounding neighborhood, the amount of properties
for lease in the area, and the present state of the market, which is stable to flat at best,
we utilize a vacancy rate of 15% for this analysis. We have developed the opinion of a
15% vacancy and collection loss as relevant to a typical holding period based upon our
review of vacancy levels in other competing retail/industrial type facilities in the market
area.
Expenses:
Management - Property management usually can be obtained at a ratio of 5% to
10% of effective gross income. This is based on actual charges within the marketplace
and conversations with numerous property managers. The subject compares in the low
end of the range at 5% of effective gross income.
Property Taxes – Ad valorem taxes are a tenant expense under a triple net
lease, thus no cost to landlord. Previously, property taxes for the subject for the most
recent year 2011 were cited at $3,743.24, or $3,743 “R. Applying the vacancy rate of
15% to the taxes above renders estimated property taxes in the amount of $561.45, or
$561 “R” as applicable to the owner during periods of vacancy. The remaining portion
of the taxes ($3,182) is considered reimbursable in our analysis below.
Insurance –Building insurance is a tenant expense under a triple net lease, thus
no cost to landlord. We asked for but were not provided with any insurance cost for the
property. Based upon insurance expenses for similar properties, we estimate an
insurance cost for this property of $3,000 “R”. Applying the vacancy rate of 15% to the
estimated insurance expense above renders an insurance expense in the amount of
86 BRANTLEY & ASSOCIATES
$450 “R” as applicable to the owner during periods of vacancy. The remaining amount
($2,550) is considered reimbursable in our net rent analysis below.
Interior Maintenance – Interior maintenance is a tenant expense under a triple
net lease, thus no cost to landlord. However, we attribute $500 as relevant during
periods of vacancy.
Exterior/Structural Maintenance & Reserves – Based upon the need for replacing
major items, i.e., roof, flooring, heat/ac, etc., and considering the overall age of the
improvements, we allocate an annual expenditure of $.20/SF, or $2,000 “R” for a
sinking fund to allow for reserves for replacement of major components in the future.
Miscellaneous, Legal and Accounting - We estimate an expense of $500 per
annum for these somewhat miscellaneous expenses with the management allowance
accounting for most of the administrative expenses.
Net Operating Income: Given the aforementioned charges against gross income,
the following estimate of net operating income is made:
87 BRANTLEY & ASSOCIATES
IncomePotential Gross Income 40,000$
Gross Income 40,000$ Less Vacancy/Collection Loss @ 15% (6,000)$ Effective Gross Income 34,000$ Expense Reimbursements 5,732$ Total Income 39,732$ Operating ExpensesReimbursed Expenses: Property Taxes 3,182$ Building Insurance 2,550$ Total Reimbursed Expenses: 5,732$
Non Reimbursed Expenses: Management/Payroll 5% 1,700$ Property Taxes 561$ Building Insurance 450$ Interior Maintenance 500$ Exterior Maintenance/Reserves 2,000$ Miscellaneous (Legal, Acct, etc.) 500$ Total Non Reimbursed Expenses 5,711$ 17%
Total Expenses (11,443)$ Net Operating Income 28,289$ Estimated Value by Direct Capitalization* 8.50% 332,812$ Estimated Value by Direct Capitalization "R"* 330,000$
*Capitalization Rate Selection:
(1) In the following table are found our previously cited comparable sales of
similar type properties from which we have extracted overall capitalization rates.
# Sale Date Address EGIM Cap Rate
1 Apr-09 5904 N Palafox 9.45 8.77%
2 Sep-10 3611 N. Palafox St. 10.15 7.90%
3 Nov-10 300 W. Leonard St. 11.12 7.50%
4 Aug-10 8653 Pensacola Blvd. 10.71 8.41%
Mean 10.36 8.15%
SUMMARY OF DIRECT CAPITALIZATON RATES
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The comparables indicate an overall rate range of from 7.50% to 8.77% and a
mean of 8.15%. With equal weight towards each comparable sale, we reconcile at a
cap rate of 8.5% via the comparable sales data.
Indicated Value via Direct Capitalization - The $28,839 estimate of net operating
income is divided by the reconciled 8.5% capitalization rate to render a value opinion of
$339,282, which we round to $340,000 “R”, via direct capitalization.
INDICATED VALUE VIA INCOME APPROACH: $340,000
89 BRANTLEY & ASSOCIATES
RECONCILIATION AND FINAL VALUE OPINION FOR FEE SIMPLE ESTATE
The three approaches to value indicate the following:
Land Value $180,000
Sales Comparison Approach $300,000
Income Approach $340,000
The sales comparison approach is typically a good indicator because it is a very
direct and straightforward valuation methodology, and we have adequate sales data
with which to execute this approach to value. We place most weight to this approach in
the reconciliation analysis.
The income approach converts anticipated future benefits of property ownership
into an estimate of present value. For investment real estate, the income approach is
one wherein great reliance is usually placed by a purchaser. It reflects what an investor
would be justified in paying in order to receive a given return on investment. Due to the
fact that the property is currently vacant and has been for some time, this approach is
given less within the reconciliation analysis.
After reviewing the approaches to value and considering the location, quality of
construction, size, condition, and income producing capabilities, it is our opinion that the
value of the fee simple estate of this property is $300,000. We give the most weight to
the direct sales comparison because of leasing weakness presently prevalent in the
market place.
MARKET VALUE OPINION FOR FEE SIMPLE ESTATE
THREE HUNDRED THOUSAND DOLLARS $300,000
Allocated as Follows:
Land Site $180,000 Improvements $120,000
90 BRANTLEY & ASSOCIATES
ASSUMPTIONS AND LIMITING CONDITIONS
1. This is a Summary Appraisal Report, which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it might not include full discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.
2. No responsibility is to be assumed for legal or title considerations. Title to the property is
assumed to be good and marketable unless otherwise stated in this report. 3. The property is appraised free and clear of all liens and encumbrances unless otherwise
stated in this report. 4. Responsible ownership and competent property management are assumed unless
otherwise stated in this report. 5. The information furnished by others is believed to be reliable. However, no warranty is
given for its accuracy. 6. All engineering is assumed to be correct. Any plot plans and illustrative material in this
report are included only to assist the reader in visualizing the property. 7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil,
or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.
8. It is assumed that there is full compliance with all applicable federal, state, and local
environmental regulations and laws unless otherwise stated in this report. 9. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
10. It is assumed that all required licenses, certificates of occupancy or other legislative or
administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.
11. Any sketch in this report may show approximate dimensions and is included to assist the
reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied.
12. It is assumed that the utilization of the land and improvements is within the boundaries
or property lines of the property descried and that there is no encroachment or trespass unless otherwise stated in this report.
91 BRANTLEY & ASSOCIATES
ASSUMPTIONS AND LIMITING CONDITIONS – CONT’D
13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser's value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process.
14. Unless otherwise stated in this report, the subject property is appraised without a
specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are - structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility.
15. Any proposed improvements are assumed to be completed in a good workmanlike
manner in accordance with the submitted plans and specifications. 16. The distribution, if any, of the total valuation in this report between land and
improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
17. Possession of this report, or a copy thereof, does not carry with it the right of publication.
It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.
18. Neither all nor any part of the contents of this report (especially any conclusions as to
value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.
92 BRANTLEY & ASSOCIATES
CERTIFICATION
We certify that, to the best of our knowledge and belief:
1. The statements contained in this appraisal report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this
report and we have no personal interest with respect to the parties involved.
4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
5. Our engagement in this assignment is not contingent upon developing or reporting
predetermined results.
6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
7. Our analyses, opinions, and conclusions were developed, and this report has been
prepared in conformity with the Uniform Standards of Professional Appraisal Practice.
8. We have made a personal inspection for the property that is the subject of this report.
9. No one provided significant professional assistance to the persons signing this certification.
10. This appraisal was not based on a requested minimum valuation, a specific valuation, or
the approval of a loan.
11. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Appraisal Institute’s Code of Professional Ethics and Standards of Professional Appraisal Practice, which include the Uniform Standards of Professional Appraisal Practice.
12. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
13. We certify that we have not appraised the subject property within the previous three years.
14. As of the date of this report, R. Shawn Brantley, MAI, has completed the continuing
education program of the Appraisal Institute. ___________________________ ___________________________ R. Shawn Brantley, MAI, CCIM Torri L. Matherne, Associate Cert Gen RZ 289 Cert Gen RZ 2987 Florida Florida
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QUALIFICATIONS AS AN APPRAISER R. SHAWN BRANTLEY, MAI, CCIM, SRA
AFFILIATIONS/DESIGNATIONS: MAI Designation: Commercial appraisal designation awarded in 1994, Member #10514 CCIM Designation: Commercial investment designation awarded in 1999, Member #8500 SRA designation: Residential appraisal designation awarded in 1990, Member #42488 State Certified in Florida (Cert Gen RZ289) and Alabama (State Certified General Real Property Appraiser, #G00419) to appraise all types of real property. FHA Appraiser: Member of Federal Housing Administration's Fee Appraisal Panel, 1986-1994. VA Appraiser: Member of Veteran's Administration's Fee Appraisal Panel, 1993-2004. Realtor: Member of Local Association, Florida Association, and National Association of Realtors. Professional Service: Past President of Appraisal Institute for 1997, Admissions Chair for Appraisal Institute in 1996, Have served extensively on Appraisal Institute’s Regional Ethics & Counseling Panel, Have served extensively on commercial (MAI) & residential (SRA) candidate experience review committees & professional standards committees for the Appraisal Institute. Past President of Board of Realtors in 1991, Have served on Realtor’s board of directors for many years, Past chairman of Realtors grievance, professional standards, long-range planning & awards committees.
EXPERIENCE: Over 20 Years of Experience: Owner/President of Brantley and Associates Real Estate Appraisal Corp. from 2004 to present. Owner/President of Martin, Brantley & Associates, Inc. from 1999-2004. Owner/Vice President of Martin, Brantley & Associates, Inc. from 1997-1998. Owner/President of Brantley Real Estate, Inc. from 1990-1996. Employed as Staff Appraiser with Presley Real Estate, Inc. from 1984-1989. Court Experience: Have testified in proceedings pertaining to values and damages on more than 100 occasions, including order of takings for eminent domain, jury trials, divorce cases, partition suits, bankruptcy matters, etc. Varied Experience: Experience includes appraisals in the following property types: Agricultural, Apartments, Automotive, Borrow Pits, Cemeteries, Churches, Commercial properties, Condemnation, Condominiums, Convenience stores, Cropland, Dental facilities, Distribution plants, Easements, Eminent domain matters, Extended stay motels, Farms, Fast food facilities, Freshwater marsh land, Golf courses, Greenhouses, Hair salons, Homes up to over 9,000SF, Hotels, Industrial properties, Land tracts up to 5,300 acres, Leasehold interests, Liquor stores, Motels, Medical facilities, Manufacturing plants, Night Clubs, Offices, Partial Interests, Restaurants, Retail, Right-of-way, Self-storage facilities, Service stations, Shopping centers, Subdivisions, Supermarkets, Timberland, Warehouses, Waterfront property, Wetlands, etc. Geography of Experience: Most extensive experience is within the Florida counties of Escambia, Santa Rosa, Okaloosa, Walton, & Bay, and the Alabama counties of Baldwin, Mobile, and Escambia. Other Experience: Employed by ETS (Educational Testing Service) as a test question writer & reviewer for Florida's examination for the state certification of real estate appraisers. Selected by the Florida Dept. of Revenue as participant in its bi-annual Florida Real Estate Value Survey. Selected by University of Florida, Institute of Food & Agricultural Sciences, as participant in its bi-annual survey of North Florida Land Values.
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Partial List of Prior Clients: Law Firms: Balch & Bingham, LLP; Borowski & Duncan; Chase, Quinnell & Jackson; Clark, Partington, Hart, Larry, Bond & Stackhouse; Greenburg, Traurig; Johnson, Green & Miller; Lindsay, Andrews & Leonard; Litvak, Beasley, Wilson; Locklin, Jones & Saba; Lyons, Pipes & Cook; Moore, Hill & Westmoreland; Shell, Fleming, Davis & Menge; Thompson, Garrett & Hines; Werre & Fitzgerald Banks: Bank of America, Bank of Pensacola, BB&T, Beach Community Bank, Hancock Bank, Peoples 1st, Compass Bank, 1st Nat'l Bank of Brewton, 1st Nat'l Bank & Trust of Crestview, 1st Nat'l Bank of Florida, Regions Bank, SunTrust, Vanguard Bank & Trust Company of Ft. Walton, Wachovia, Whitney Bank. Governmental Agencies & Political Subdivisions: City of Pensacola, City of Milton, City of Destin, City of Gulf Breeze, Escambia County, Florida Department of Environmental Protection, Florida Dept. of Transportation, Santa Rosa Bay Bridge Authority, Santa Rosa County, Santa Rosa County School Board, U.S. Army Corps of Engineers, U.S. Department of Housing & Urban Development, U.S. Department of Veterans Affairs. Corporate Clients: Associates Relocation, American Cyanamid, Baptist Hospital, Baskerville-Donovan, Inc., Blue Sky Timber, LLC, Chicago Title Insurance Co., Coldwell Banker Relocation, Education Credit Union, Elliot-Cooke & Co. CPA's, Equitable Relocation, Farm Credit, Figg Engineers, Inc., General Electric Corp., Gulf Power Co, International Paper Corporation, Medical Center Clinic, P.A., Monsanto Employees Credit Union, Moreland-Altobelli Assoc., Inc., Pace Water System, Inc., Sacred Heart Hospital, Saltmarsh, Cleveland & Gund, CPA’s, Southern Farm Bureau Casualty Insurance Co, Teachers Federal Credit Union. EDUCATION:
M.S. Real Estate, University of St. Thomas, 2007. B.S., Finance & Investment Management, University of Alabama, 1984. Over 1,000 classroom hours of specialized appraisal education specific to real estate appraisal: COURSE DESCRIPTION DATE COMPLETED HOURS SPONSOR Business Practices & Ethics 12/10 07 Appraisal Institute Advanced Appraisal Review 06/10 17 Florida Department of Transportation Supervisor and Trainee Appraiser 06/10 3 Florida Department of Transportation USPAP Update and Core Law 06/10 7/3 Florida Department of Transportation Aviation Valuation 01/09 2 Pensacola Regional Airport USPAP Update and Core Law 04/08 7/3 Florida Department of Transportation Supervisor & Trainee Rules & Roles 04/08 3 Florida Department of Transportation Advanced Appraisal Review 04/08 17 Florida Department of Transportation Appraisal of Sovereign Submerged Lands 03/08 06 Dept. of Environmental Protection Valuation of Conservation Easements 01/08 31 Appraisal Institute Using the HP12C Calculator 11/06 07 Appraisal Institute Appraisal of Nursing Facilities 11/06 07 Appraisal Institute Analyzing Operating Expenses 11/06 07 Appraisal Institute Market & Feasibility Analysis 08/06 40 University of St. Thomas National USPAP 04/06 07 McKissock Florida Laws & Regulations 04/06 03 McKissock Advanced Appraisal Topics 01/06 40 University of St. Thomas Business Practices & Ethics 12/05 08 Appraisal Institute Statistical Analysis for Appraisal 08/05 40 University of St. Thomas USPAP 10/04 07 McKissock Legal Issues in Valuation 08/04 40 University of St. Thomas Effective Communication 08/04 40 University of St. Thomas Uniform Standards for Federal Land Acq. 03/04 16 Appraisal Institute Timberland Appraisal Methods 02/04 12 Appraisal Institute Florida State Law for Real Estate Appraisers 11/03 03 Appraisal Institute Effective Appraisal Writing 08/03 07 Appraisal Institute USPAP 11/02 04 Bert Rodgers Communicating the Appraisal 11/02 04 Bert Rodgers
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EDUCATION:
Neighborhood Analysis 11/02 04 Bert Rodgers Residential Subdivision Analysis 11/02 05 Bert Rodgers Sales Comparison Approach 11/02 06 Bert Rodgers Appraisal Research and Analysis 11/02 04 Bert Rodgers Urban Land Economics 08/01 26 Univ. of St. Thomas USPAP Update 06/01 07 S. Vehmeier Uniform Standards & Prof. App. Practices 11/00 10 McKissock Factory-Built Housing 11/00 10 McKissock Automated Valuation Models 11/00 10 McKissock USPAP “Core” Law 08/99 07 NWF Ch. Appraisal Inst. Comp. Commercial Review 06/99 20 CCIM Real Estate Decision Analysis 01/99 30 CCIM Real Estate Market Analysis 09/98 30 CCIM Real Estate Financial Analysis 03/98 30 CCIM Standard of Professional. Practice “C” 04/98 15 Appraisal Institute USPAP “Core” Law for Appraisers 10/97 07 Appraisal Institute Condemnation Valuation 05/97 04 EC Ch. Appraisal Inst. Tomorrows Appraiser 10/96 04 Appraisal Institute Standards of Prof. App. Prac. A 1996 16 Appraisal Institute Tools for Better Appraising 1996 01 NWF Ch. Appraisal Inst. Complex Residential Properties 1995 07 Mid-S Al C Appraising FHA Insured Prop. 1995 07 Appraisal Institute Exp. Review Training Program 1995 04 NWF Ch. Appraisal Inst. Understanding Limited Appraisals 1994 07 Appraisal Institute Standards of Prof App Pract. B 1994 11 Appraisal Institute Standards of Prof App Pract. A 1994 15 Appraisal Institute USPAP Core Law Seminar 1994 07 NWF Ch. Appraisal Inst. Comp. Appraisal Workshop 1994 23 T. Whitmer Co USPAP/Environ. Hazards 1992 10 Real Estate Ed. Spec Litigation Valuation 1991 15 Appraisal Institute Adv. Income Capitalization 1989 15 Appraisal Institute State Cert. Real Est Appr Cs-II 1989 60 Bert Rodgers State Cert. Real Est Appr Cs-I 1989 60 Bert Rodgers Valuation & Report Writing 1988 48 AIREA/Univ. Florida Case Studies in RE Valuation 1987 48 AIREA/Univ. North Carolina Standards of Professional Prac 1987 28 AIREA/Texas Christian University Appl Residential Prop Valuation 1987 challenged SREA Capitalization Theory & Tech B 1987 challenged AIREA Capitalization Theory & Tech A 1986 challenged AIREA Basic Valuation Proc. (Exam 1A2) 1986 challenged AIREA Real Estate Appr Prin. (Exam1A-1) 1985 challenged AIREA Real Estate Brokers Course 1984 48 Bert Rodgers Principals of Real Estate (Fl431) 1984 60 University of Alabama Real Estate Finance (Fl 436) 1983 60 University of Alabama Real Estate Salesman's Course 1979 51 Bert Rodgers
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QUALIFICATIONS AS AN APPRAISER Torri L. Matherne
EDUCATION: Bachelor of Science Degree, Lindenwood University, St. Charles, Missouri, 1999, Major: Marketing. Successful completion of the following courses and/or exams, which are specific to real estate appraisal:
• Principles of Real Estate Appraising, National Association of Independent Fee Appraisers, St. Louis, Missouri, 2003.
• Concepts, Technology, and Techniques, National Association of Independent Fee Appraisers, St. Louis,
Missouri, 2003.
• 2004 National USPAP Course, National Association of Independent Fee Appraisers, St. Louis, Missouri, January 2004.
• Introduction to Income Capitalization, Appraisal Institute, New Orleans, Louisiana, October 2004.
• Florida Appraisal Board I, Ed Klopfer School of Real Estate, Pensacola, Florida, February 2005.
• 2006 National USPAP Course, Ed Klopfer School of Real Estate, Pensacola, Florida, April 2006.
• Florida Appraisal Board II, Ed Klopfer School of Real Estate, Ft. Walton Beach, Florida, May 2006.
• Florida Appraisal Board III, Steve Williamson’s School of Real Estate, Orlando, Florida, August 2006.
• Passed the Florida State General Appraiser Exam, Pensacola, Florida, November 2006.
• The Dirty Dozen Course, McKissock Appraisal School Online Education, October 2008
• The Cost Approach Course, McKissock Appraisal School Online Education, October 2008
• Florida Supervisor/Trainee Roles and Relationships Course, McKissock Appraisal School Online
Education, October 2008
• Florida Appraisal Laws and Regulations Course, McKissock Appraisal School Online Education, October 2008
• Appraising FHA Today Course, McKissock Appraisal School Online Education, October 2008
• 2008-2009 National USPAP Update Equivalent Course, McKissock Appraisal School Online Education,
October 2008
• Deriving Adjustments, Steven W. Vehmeier School of Real Estate, August 2009.
• Florida Supervisor/Trainee Roles and Relationships Course, McKissock Appraisal School Online Education, November 2010
• Florida Appraisal Laws and Regulations Course, McKissock Appraisal School Online Education, November 2010
• Appraising Developing and Growing an Appraisal Practice, McKissock Appraisal School Online Education, November 2010
• 2010-2011 National USPAP Update Equivalent Course, McKissock Appraisal School Online Education,
97 BRANTLEY & ASSOCIATES
November 2010 EXPERIENCE: Employed by Brantley & Associates Real Estate Appraisal Corp. (formerly Martin, Brantley & Associates, Inc.), Pensacola, Florida as an Appraiser from 2011 to present. Employed by G. Daniel Green & Associates, Inc., Gulf Breeze, Florida as an Appraiser from 2004 to 2011. Employed by Investment Consultant Group, St. Charles, Missouri as an Appraiser from 2001 to 2004. . AFFILIATIONS: State-Certified General Real Estate Appraiser State of Florida, #RZ2987 SCOPE OF CLIENTS (Brantley & Associates): AmSouth Bank, Bank of America, Bank One, Bank of Pensacola, Bank of the South, Compass Bank, First American Bank of Pensacola, First National Bank of Florida, First Union Bank, Peoples First Community Bank, Nations Bank, Regions Bank, Southtrust Bank, SunTrust Bank, Whitney Bank, Vanguard Bank, Florida Department of Transportation, area attorneys, individuals, accountants and estates.
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ADDENDA
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GENERAL AREA ANALYSIS
The Pensacola Metropolitan Statistical Area (MSA) consists of the two westernmost
counties in Northwest Florida, Escambia and Santa Rosa. The MSA contains the cities of
Pensacola, Milton and Gulf Breeze, and the towns of Century and Jay. The counties are
situated along the Gulf of Mexico and the Intracoastal Waterway in the area dubbed as “The
Western Gate to the Sunshine State”. The area is strategically placed between various large
southern cities. It is located approximately 60 miles from Mobile, Alabama; 200 miles from New
Orleans, Louisiana; 200 miles from Tallahassee, Florida; and 325 miles from Atlanta, Georgia.
Escambia County has approximately 661 square miles with Santa Rosa County encompassing
1,024 square miles. There is an additional 100 square miles of water area within the county
boundaries. A delineation of the boundaries is shown on the map below:
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There are four forces that have significant influence on property values in the region.
They are listed as follows:
ECONOMIC FORCES
SOCIAL FORCES
GOVERNMENTAL FORCES
ENVIRONMENTAL FORCES
The interaction of these forces influences the value of real property in the market. The
regional analysis is presented with these factors in mind.
ECONOMIC FORCES: The analysis of economic trends will be confined to the local
economy as most applicable to the subject of the appraisal. This category will evaluate trends
in employment and housing trends within the MSA.
Employment: Pensacola's regional economy continues to rely heavily upon
governmental expenditures (primarily military); however, tourism, industry, health care and
education make up the majority of its workforce and economy. At the present time, 36% of the
work force is employed by the service industry, 16% by the retail trade industry, and 21% is
employed by federal, state and local government. In an effort to diversify the past/existing labor
trend, local government has intensified their efforts in securing new industry to the area. This
effort commenced in the late 1980s and continues through the present time. Per the U.S.
Bureau of Labor Statistics, the area’s unemployment rate as of February 2010 was 11.5%,
which ranks at 262nd lowest unemployment in the U.S. of 372 tracked metropolitan areas.
As stated, military personnel have had a profound effect upon the area's economy.
Escambia and Santa Rosa Counties are host to numerous military installations including Naval
Air Station Pensacola, Saufley Field, Corry Station and NAS Whiting Field. Known as the
"Cradle of Naval Aviation", Naval Air Station Pensacola serves as the launching point for the
flight training of every Naval Aviator, Naval Flight Officer (NFO), and enlisted aircrewman. In
addition, approximately 32,000 aviation personnel in aeronautical technical phases of naval
operations are trained here. The Pensacola Naval Complex in Escambia and Santa Rosa
counties employs more than 16,000 military and 7,400 civilian support personnel.3
The majority of Naval activities in the area are concentrated on the west side of the
metropolitan area. The largest base is NAS Pensacola, which is located southwest of
Pensacola’s central business district at the entrance to Pensacola Bay. Additional military
facilities include Eglin Air Force Base and Hurlburt Field. These facilities are located mostly in
3 NAS Pensacola, Commanding Officer, Naval Air Station Pensacola, www.naspensacola.navy.mil (10/15/2007)
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Okaloosa County but do provide economic impact to Santa Rosa County, and to a lesser extent,
Escambia County.
On August 27, 2005, the Defense Base Realignment and Closure Commission (BRAC)
completed their final recommendations for base realignments and closures. Those
recommendations affecting the Pensacola installations include the transfer of the Defense
Finance and Accounting Services (400 jobs), the Officer Training Command (738 jobs), the
Naval Aeromedical Research Laboratory (40 jobs), and Space and Naval Warfare Systems (139
jobs). This resulted in a loss of approximately 1,317 jobs; however, this loss was offset by
BRAC’s recommendation to transfer Randolf Air Force Base’s undergraduate pilot and
navigator training to NAS Pensacola. This transfer resulted in a gain of approximately 625 jobs,
thus the net loss to NAS Pensacola was approximately 692 jobs. In summary, the current
outlook for the future of NAS Pensacola looks positive.
The 2005 BRAC recommendations also affected Eglin Air Force Base, resulting in a net
gain of 2,200 jobs. Eglin is the largest Air Force base in the world. It covers three counties and
over 724 square miles of land and 123,000 square miles into the Gulf of Mexico. More than
20,000 jobs and $1.4 billion are tied directly to activities at Eglin Air Force Base, Hurlburt Field
and Duke Field.
Other major employers in the region include:
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These employers represent a broad base of industries.
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A significant number of jobs in the service sector are provided by the health care
industry. Pensacola is a regional center for medical care in Northwest Florida and South
Alabama, offering specialized health care services for people in a wide multi-state area. The
three regional hospitals include Baptist Hospital, Sacred Heart Hospital, and West Florida
Hospital. The three centers have a total of 1,483 beds and feature a variety of medical
specialties for the Southeast region.
In addition to the three regional hospitals, other chief healthcare facilities within this MSA
include Gulf Breeze Hospital (associated with Baptist Hospital), Naval Hospital, Santa Rosa
Medical Center, and Nemours Children’s Clinic. Two new major health care facilities were
recently completed in the area, which are a state-of-the-art Veterans Affairs/Department of
Defense Joint Ambulatory Care Clinic to be located near Corry Station and a world-class multi-
million dollar orthopedics and sports medicine center, the Andrews Institute (featuring
celebrated orthopedic surgeon James R. Andrews) in Gulf Breeze.
Unemployment: As previously stated, the Northwest Florida region’s unemployment rate
for February 2010 was 11.5%. This unemployment is slightly higher than the national average
of 10.4%.
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Unemployment Rates in Santa Rosa Count over the past 20 years:
Unemployment Rates in Escambia County over the past 20 years:
The drastic rise in the unemployment rate over the past two years is attributed to the
economic recession that started in 2008. Recently, in 2010 we have seen the economy on a
rise and are slowly starting to come out of the recession. We can expect that the
unemployment rate is about at its cap, and future trends should be for reductions in the
unemployment rate.
Housing: Both counties offer a wide variety of housing options ranging from affordable to
luxury, waterfront, secluded or suburban residence. Growth within the housing market had been
rapid in the past, and from 2004 to late 2005 it accelerated considerably due to housing
shortages created by recent hurricanes. There was a great demand for residential property in
the general market, and from 2004 through the third quarter of 2005, real estate values were
rapidly increasing, and most land deals went down with multiple developers in the hunt.
Conversely, in late 2005, the demand for residential homes (single-family homes,
townhomes, condominiums, etc.) began to take a downward turn. This has been attributed to
several factors. Initially, recent hurricanes, and the extensive damage they produced, caused
construction costs and insurance premiums to rise exponentially. This also created in the
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general public an awareness of the vulnerability of this hurricane prone area. Local Realtors
subsequently began reporting a downward trend in residential sales.
According to the Pensacola Association of Realtors’ Multiple Listing Service the average
number of monthly sales drastically decreased over 32% from January 2007 to the first quarter
of 2010. The average “days listed on the market” has increased from109 days to 124 days over
this same time period. The number of listings in March 2010 was 3,791 single-family homes
and 806 condominiums. Thus, the MLS statistics support what local Realtors and developers
have been reporting in regards to a declining demand within the residential market, thus
resulting in a similar decline in demand for residential land.
In addition to the abundance of listings for residential housing and minimal sales, we
also observe falling median prices. The affordable housing market has been more resistant to
decline in both cost and absorption; however, other sectors of the residential market have
shown declining prices, especially along the waterfront. According to the Haas Center, even
with median home prices decreasing, many residents are feeling the pinch from increased
property taxes in addition to already high insurance premiums. And although the housing
affordability for Northwest Florida is improving with regard to lower interest rates and declining
housing prices, the increases in insurance and property taxes coupled with minimal increases in
median income will continue to make housing affordability a serious problem. Thus, we surmise
that until the general area as a whole sees some kind of relief in regards to insurance costs and
construction costs, and until the hurricane phobia subsides, demand for housing may remain
somewhat stagnant into the foreseeable future.4
SOCIAL FORCES: This category is primarily concerned with population characteristics
and demographics. A study of an area's population characteristics produces much information
about the basic demand for real estate in that market. Following is regional and city data
pertinent to that topic.
Population: Population growth in the Pensacola MSA (Escambia and Santa Rosa
Counties) has continued at a steady pace since 1960.
Population in the Pensacola MSA (2005-2009)
YEAR ESCAMBIA SANTA ROSA PENSACOLA MSA 2009 303,343 151,759 455,102 2008 302,776 150,356 453,132 2007 297,189 146,524 443,713 2006 295,426 144,561 439,987 2005 295,624 142,442 438,066
Population Increase Rates from 2005 – 2009:
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Escambia Santa Rosa Pensacola MSA
Percent Change from 2005 to 2006 -0.07% 1.49% 0.44%
Percent Change from 2006 to 2007 0.60% 1.36% 0.85%
Percent Change from 2007 to 2008 1.89% 2.62% 2.12%
Percent Change from 2008 to 2009 0.19% 0.93% 0.43%
Percent Change from 2005 to 2009 2.61% 6.54% 3.89%
Population Trends in Santa Rosa County:
Population Trends in Escambia County:
4 Housing Affordability, A Quarterly Publication of the Haas Center for Business Research & Economic Development 4 Housing Affordability, A Quarterly Publication of the Haas Center for Business Research & Economic Development at the University of West Florida (Summer 2007).
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Basic demographic estimates for Santa Rosa and Escambia Counties for the year 2009:
Demographic Estimates
Santa
Rosa Escambia US
Income Per Capita Income $24,691 $23,347 $27,466
Median Family Income $62,522 $53,845 $63,211
Unemployed 10.9% 11.8% 10.2%
Education High school graduate or higher 87.90% 86% 84.50%
Bachelor's degree or higher 23.70% 23.50% 27.40%
Occupied housing
Units Owner-occupied housing units 79.80% 68.90% 67.10%
Renter-occupied housing units 20.20% 31.10% 32.90%
Vacant housing units 13.30% 16% 12%
Median value of owner occupied
homes $188,200 $145,700 $192,400
Age Median Age (in years) 39 37.8 36.7
GOVERNMENTAL FORCES: This category addresses state and local government
forces within the regional area.
Type of Government: Santa Rosa and Escambia Counties are governed by a board of
commissioners. Specified districts with some “at large” seats elect the commissioners. The
board in turn appoints a county manager who oversees the day-to-day operations of the
respective governments.
Building Codes/Zoning: The various cities of Pensacola, Gulf Breeze and Milton and the
Santa Rosa and Escambia County governments all operate separate planning and zoning
departments. The various departments are responsible for establishing and enforcing land use
regulations. These departments are extremely helpful in deciphering land use regulations.
The City of Pensacola, Escambia County, the City of Milton, and Santa Rosa County
also operate separate building inspection departments. This office is responsible for enforcing
codes for building, electrical, mechanical, plumbing, and gas installations.
The state of Florida has certain requirements before new development can take place.
Under Florida’s concurrency laws, an area must have adequate public facilities before new
development may occur. All comprehensive plans across the state must include concurrency
for roads, sanitary sewer, solid waste, drainage, potable water, parks and recreation, and mass
transit, where applicable.
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Law Enforcement/Fire Department: Escambia County and Santa Rosa County Sheriff
Departments within the MSA and the respective City Police Departments provide adequate law
enforcement within the immediate market area. Fire departments are staffed by volunteers in
the County and paid employees in the City.
Utilities: Northwest Florida is served with electrical power by Gulf Power Company,
which owns three modern generating stations. The Bell South Telephone Company provides
telephone service throughout the MSA. The Emerald Coast Utilities Authority supplies water
and sanitary sewage disposal service to Escambia County. It also disposes of trash within the
unincorporated area of the County with Sanitation Services of Pensacola having jurisdiction
within the city limits. Natural gas is available for most areas by Energy Services of Pensacola.
South Santa Rosa Utility supplies the city of Gulf Breeze with water and sewer service. Natural
gas is also available in Gulf Breeze through the Gulf Breeze Natural Gas Department. The
Public Works Department of Milton provides natural gas, sanitation, and water for the areas of
Milton, East Milton, and Pace.
Transportation: Federal Highway Interstate 10 runs through the MSA in its course from
Los Angeles, California to Jacksonville, Florida. Additionally, the MSA is dissected by an ample
variety of State, County and local roads, providing access throughout the area. The Pensacola
Regional Airport is a commercial airport served by American Eagle, Continental Airlines, Delta
Airlines, Northwest Airlink, and US Airways with an average total of 90 flights per day. The City
of Pensacola operates the Port of Pensacola, which can accommodate ocean-going vessels
with drafts up to 33 feet.
Taxes: The State of Florida has no personal income tax. Additionally, there is no sales
tax on food, medicine, packaging, boiler fuels or inventories. Sales taxes targeted toward
tourism (retail sales, rentals, transient living accommodations) comprise 65% to 70% of Florida's
tax revenue. There is a corporate state income tax of 5.5%. Ad valorem taxes are levied on
property throughout the county to provide operating revenue to local government. Escambia
County sales tax is at $0.075 on the dollar and Santa Rosa County is subject to $0.065 on the
dollar.
ENVIRONMENTAL FORCES: Environmental forces relate to the characteristics of a
property's geographic location.
Climate: The MSA is located in a generally warm climate, typical of the region along the
upper Gulf Coast. The average temperature in January is 52 degrees and in July is 83 degrees.
High winds, tropical storms or hurricanes have occurred in late summer and in early fall.
Topography/Soil: The MSA is located on the Gulf Coastal Plain, which generally
consists of level and flat land. The soils are mostly of the sandy loam nature and are generally
well suited for buildings, roads and other common urban improvements.
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Recreation: A wide variety of cultural activities such as music, art, theatrical productions
and dance are located in the area. Canoeing, boating, fishing and other outdoor sporting
activities are popular throughout the MSA. Several popular state and national parks are located
in the MSA: Blackwater River State Park, Big Lagoon State Park, and the Gulf Islands National
Seashore Park, which contains Fort Pickens. The MSA is also home to the Pensacola Pelicans
who began their 10th season in May 2010 as a minor league baseball team. The Pelicans
currently play their games on Jim Spooner Field at the University of West Florida, but they will
eventually move into the Vince Whibbs Community Maritime Park, once the bay-front stadium is
completed downtown.
Transportation: Escambia and Santa Rosa Counties are located along a sheltered 12-
foot draft barge route, which runs from Brownsville, Texas to Apalachicola, Florida. Amtrak and
CSX Transportation provide rail service to and from Pensacola. Greyhound Lines, Inc. provides
bus service to and from the Pensacola MSA.
Regional Resources: Agriculture has continued to be a major contribution to the
economy. It remains one of the prime resources of the area for row crop and tree farming.
There are also extensive petroleum deposits offshore in the Gulf of Mexico. However, at the
current time, only exploratory drilling has been permitted. The future impact of this resource is
questionable as the prospect of full production drilling is vehemently opposed by
environmentalists and local and state government.
Perhaps one of the most recognized resources of the Pensacola MSA are the sparkling
white sandy beaches, which extend from Mobile Bay to peninsular Florida. The beaches in the
Pensacola area are a major tourist attraction.
The skepticism of state officials on the issue of offshore drilling has recently been
justified by BP’s oil spill in the Gulf of Mexico. The crisis started when an offshore oilrig
exploded and sank in the gulf on April 20, 2010. The incident ruptured the oil well and has
caused a blowout, or an uncontrollable spill. The well has since spewed millions of gallons of
crude oil into the Gulf of Mexico and continues to spew oil to this day (May 13, 2010). The
environmental and economical repercussions of this spill could be catastrophic. The oil spill has
imperiled the fishing industry and threatens marine life along the gulf coast. Dead dolphins, fish,
birds, and turtles have already started to wash up on the beaches. The realization that the oil
slick could make landfall in Pensacola has reminded residence of how important the beaches
and waterways of the Pensacola MSA are to the economy.
Hurricanes: As Florida endures the majority of Atlantic hurricane landfalls, with statistics
identifying Pensacola as having a 1 in 8 chance of being the target, hurricane damage and their
repercussions are major concerns for the Pensacola MSA. As described earlier in the Housing
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section, Hurricane Ivan was the initial onset of the current market decline for the Pensacola
MSA.
The Atlantic hurricane season extends from June to November. Within the past twelve
years the Pensacola MSA has encountered six damaging and even deadly hurricanes, among
multiple tropical depressions, tropical storms, and minor hurricanes. Following is a table briefly
describing each:
Name ERIN OPAL GEORGES IVAN DENNIS KATRINA
Date August-95 October-95 September-98 September-04 July-05 August-05
Landfall Pensacola, FL Gulf Breeze, FL Biloxi, MS Gulf Shores, AL Pensacola, FL New Orleans, LA
Category 1 3 2 3 3 3
Winds 99 mph 116 mph 104 mph 120 mph 120 mph 175 mphArea Storm-Related Deaths None None None 18 5 1,836
Total U.S. Loss $700 Million $5.2 Million $2.96 Billion $12 - $14 Billion $1.8 Billion $84 Billion
MAJOR HURRICANES IN PENSACOLA MSA
These storms, along with several other 2004-2005 Florida hurricanes, created in the
general public an awareness of the vulnerability of this hurricane prone area. Due to these
natural disasters frequently targeting the Escambia and Santa Rosa County areas, multiple
hurricane shelters, evacuation planning guides and assistance programs have been formed to
support local residents in preparing for and dealing the outcomes of these storms. There has
been no detrimental hurricanes impact the area since Hurricane Katrina in August 2005.
SUMMARY: The Pensacola MSA remains an evolving metropolitan area, traditionally
dependent on tourism and an extensive military presence. The intensification of efforts to
secure other industries shows the willingness of local government officials and community
leaders to achieve a diversified economy. The MSA also has natural resources, affordable
housing, and a growing, young workforce, all of which provide a good foundation for future
growth. We conclude that the MSA is an economically viable environment with demand levels
for affordable housing within this general area sufficient for an operative market, but clearly
slower than we have historically seen.
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SUBJECT PROPERTY DATA
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